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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: DanZ who wrote (17956)	12/20/1998 12:14:00 PM
From: Ron McKinnon	Read Replies (1) \| Respond to of 53068

Dan ASHW >>>I'm going to calculate the torpedo ratio for ASHW going back as far as I can to get an idea how bad the inventory and receivables look as I understand your 'torpedo ratio" it uses sales as the divisor for inventory a more accurate way is to use cost of goods sold instead insted of sales; since inventory is stated at the lower of cost or market A/R is impacted by: trailing sales levels; following a low sales period A/R will appear to be high and following a strong sales period they will look lower; the best way is to calculate it for say 8 trailing quarters to get a true trend terms of sales payment speed by the customers disputes, hold backs, etc also, you may want to call ASHW IR; see what they tell you; then we can compare notes to see if they are giving a consistant story