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After reading today's Article on the cash conversation cycle I ran the fomulas on Costco last three years of financials and this is what I got:
Days Inventory outstanding	2001            2000                1999 		
net sales	                34797.04	32164.3	                27456.03
net sales per day	        95.33435616	88.12136986	        75.222
Inventories	                2738.5	        2490.09	                2210.48

Days Inventory outstanding	28.72521628	28.25750444	29.38608386

Days sales outstanding			
receivables	                324.77	        174.38             168.65
DSO (receivables/net sales)	3.406641772	1.978861657	2.242030257

Days Payable Outstanding			
Cost of Goods Sold	        30598.14	28322.17	24170.2
COGS per day 	                83.83052055	77.5949863	66.21972603
Accounts Payable	        2727.64	        2197.14	          1912.63
DPO	                        194.8314286	156.9385714	136.6164286

Cash Conversation Cycle			
DIO+DSO-DPO	                -162.6995705	-126.7022053	-104.9883145 

So based on this it looks like Costco converts its cash well before it has to pay out its payables. Does this look right?  If so this is amazing.

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