From 033b1a54e2d250bd954d6ee7bc7a38054b89f268 Mon Sep 17 00:00:00 2001
From: ronny abraham <ronny.abraham@ymail.com>
Date: Thu, 28 Nov 2024 02:35:49 +0200
Subject: [PATCH] added some formulas

---
 mba/ch40.org | 7 ++++++-
 1 file changed, 6 insertions(+), 1 deletion(-)

diff --git a/mba/ch40.org b/mba/ch40.org
index c1859e7..46b1665 100644
--- a/mba/ch40.org
+++ b/mba/ch40.org
@@ -46,4 +46,9 @@ How do they forcast
 if we put $1 into inventory it won't be converted into cash for another 50 days
 
 ** Inventory to sale conversion period
-\(\text{ISCP} = \frac{\text{average inventories}}{\text{COGS} \cdot 365}\)
+- you can also do this by season, just replace 365 days with 90 days
+\(\text{ISCP} = \frac{\text{average inventories}}{\text{COGS} \times 365}\)
+
+** Purchase to Payment Conversion Period
+- pay your bills as late as you can
+\(\text{Purchase to Payment Conversion Period} = \frac{\text{average payables} + \text{average accrued liabilities}}{\text{COGS} \times 365}\)