I believe it’s the issue with the formula in the Screener. In Screener formula for DIO is ‘Annual Inventory / Annual Material Cost * 365’, Looking at Likhita Infra’s FS we can see their Inventory is 6,829.81 out of which 6,620.88 is WIP. WIP loaded with other OH so we have to include Cost of materials and Construction exp which adds upto 25,473. If use only the Material cost of 5,844 we would have inflated DIO.
| Subscribe To Our Free Newsletter |
