We're looking at retailers, and in research reports on their working capital they're talking about working capital. My accounting knowledge is pretty lacking, I obviously know current assets-current liabilities.
The research reports then talk about "payables going down to 69 days of COGS" and then "in 2016 it bounced back with payables going back to 101 days" ... what does this mean when they say payables in units of days?
I am also aware of the CCC = DIO + DSO - DPO, is this what they're talking about?
If anyone has a good primer on understanding working capital, and how to understand high variations in working capital, I'd appreciate it, as it's a big gap in my knowledge.
