Costco's Inventory Strategy with Vendor Financing

Описание к видео Costco's Inventory Strategy with Vendor Financing

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Acquired Podcast Episode: Costco (Audio)

Full episode:    • Costco (Audio)  

Costco boasts an exceptional inventory turnover of 12.4 times annually, selling products approximately every 26 to 27 days. This efficient system, operating within standard net-30 payment terms, keeps their capital free from inventory ties. Their strategy, known as a "negative cash conversion cycle," means vendors effectively finance Costco's inventory, granting the company impressive financial flexibility.

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