Guide to Management Accounting Inventory turnover for managers

概要：

ROE (Return on Equity) has been gradually improving in Japan and is drawing attention now.
According to the Ito report announced by the Ministry of Economy, Trade and Industry in August 2014, it was pointed out that the issues of Japanese companies are not in asset turnover rates and financial leverage, but in terms of their ability to make earnings, compared to western companies. However, I believe that both accounts receivable turnover and inventory turnover are generally lower than those in Europe and the United States, among asset turnover rates, which is an issue for CCC (Cash Conversion Cycle) management.
As for inventory, we position inventory turnover days as company-wide common control index for decision-making, not traditional inventory turnover rate and inventory turnover period, and we propose integrated activities of management team and operation site to improve ROE and ROIC (Return on Invested Capital).
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