Working capital is a measure of a company's liquidity, operational efficiency and its short-term financial health. Days of Inventory Outstanding (DIO) – DIO shows how quickly inventory is sold.Selling stock faster has a positive impact on working capital as it means that cash is not tied up in unsold … Note that a low value of 1 or less of inventory to working capital … Furthermore, while sector-level trends give us an indication of the challenges facing certain industries, performance also varies widely at a company level within each sector. Hierbei wird durch die Optimierung der sogenannten Financial Supply Chain, also der finanziellen Ströme eines Unternehmens, eine Reduzierung des Working Capital … Days inventory outstanding ratio simply speaks of the time, a business takes, to convert its inventory into sales. Inventory to Working Capital Explanation. Das Working Capital Management kann als Instrument bzw. Nevertheless, with the requirement that sufficient liquidity is available. Working Capital may be defined by efficiency of a company and their shortterm financial health. A positive working capital means that a company is theoretically able to pay the shortterm liabilities. What is Days Inventory Outstanding (DIO)? ganzheitlicher Ansatz zur Verbesserung der Liquidität und Rentabilität eines Unternehmens eingesetzt werden. affecting DIO and the working capital impact that is expected. To better explain inventory to working capital, it is an important indicator of a company’s operation efficiency. Also known as days sales of inventory, it is an important performance indicator in inventory and working capital … Industry Performance Eight out of 18 sectors have improved working capital … Negative working capital means the respective opposite.