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Reply #4: Disagree Frodo - That Is An Economics Definition [View All]

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mhr

(1000+ posts) Send PM | Profile | Ignore

Wed Apr-14-04 12:06 PM
Response to Reply #3

4. Disagree Frodo - That Is An Economics Definition

All business tries to keep inventories as low as possible since inventories represent stagnant capital on the balance sheet.

Anytime inventories rise without a similar rise in sales, the business is not growing revenue and is losing money in trapped inventories.

This is a case were the economists and CEOs disagree on metrics.

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