Days' sales in inventory is a ratio that measures how quickly a company can collect its receivables.

Name: Days' sales in inventory is a ratio that measures how quickly a company can collect its receivables.
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Days' sales in inventory is a ratio that measures how quickly a company's inventory is sold, not how quickly it can collect receivables. The ratio used to measure how quickly a company can collect its receivables is called accounts receivable turnover.

Days' Sales in Inventory Is a Ratio That Measures How