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Technology Stocks : THQ,Inc. (THQI)
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To: Todd D. Wiener who wrote (7204)7/24/1998 2:04:00 PM
From: Todd D. Wiener  Read Replies (1) of 14266
 
There's another measure of inventory efficiency. It's calculated by dividing inventory by cost of sales and multiplied by 91 days. That's days of inventory (DOI). 365 divided by the DOI is equal to the number of annual turns. Unfortunately, this calculation doesn't work with THQ's numbers, perhaps because they reserved so much. I'd appreciate some help from the resident CPAs on this matter, since this measure of inventory efficiency is the one with which I'm more familiar.

Todd
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