Not sure if anyone has analyzed the reason behind the increase in inventory / inventory days.
Noticed that the inventory volume has increased over last 2 yrs significantly with accompanying increase in inventory days).
In both the last 2 ARs, the reason company has given is bunching of orders in the month of Feb/Mar.
2023 AR extract:
2024 AR extract:
Why would be so much on increase in inventory even though they combine orders in last 2 months and that too for every year? The inventories are almost ~50% of their annual sales and ~40% of the balance sheet.
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