Not exact matches
In the case of Alta Genetics, their product is not quite as
high - tech and probably has a long shelf life, so their
inventory turnover of 267 days isn't quite as
high as it appears.
You can likely maintain
higher asset
turnover and
higher returns on capital by getting more cash up front and moving that money more quickly into new
inventory than waiting 3 - 4 years for modest upside from interest payments.
Think of a classic discount retailer, which doesn't make much money per unit sold (low margins) but enjoys great
inventory velocity (
high turnover).
rec (very
high acc rev
turnover) and 2,71 mio of
inventory.
Same for its store and food & beverage offering — albeit, with smaller numbers — cash & credit card revenues,
inventory's generally limited / perishable /
high turnover, and it's not unusual to wring 2 - 3 month payment terms from suppliers.
By keeping
inventory low and
turnover high, they were able to endure confiscations and start again.