‭SCOM 372‬

‭Winter 2024‬

‭Assignment 2‬
‭Case Study:‬
‭Financial Statements for Walmart Stores Inc. and Macy’s Inc.‬

‭Presented to:‬
‭Ahmet Satir‬

‭Prepared by:‬
‭Stella Vergados (40172469)‬
‭Raphael Boyer (40216019)‬

‭Date: February 14 2024‬

‭Using:‬‭Supply Chain Management, Sunil Chopra, 7‬‭th‬ ‭edition, p.68‬

‭Question‬
‭Table 3.8 contains the financial results for Walmart and Macy’s.‬
‭a)‬ ‭Calculate‬ ‭the‬ ‭financial‬ ‭performance‬ ‭metrics‬ ‭for‬ ‭Walmart‬ ‭and‬ ‭Macy’s‬ ‭based‬ ‭on:‬‭i)ROE,‬
i‭i)ROA,‬‭iii)‬‭profit‬‭margin,‬‭iv)‬‭asset‬‭turnover,‬‭v)‬‭APT,‬‭vi)‬‭ART,‬‭vii)‬‭INVT,‬‭viii)‬‭PPET‬‭and‬
‭ix) C2C.‬‭(Assume a tax rate of 35%).‬

‭FOR WALMART:‬

‭𝑁𝑒𝑡‬‭‭𝐼‬ 𝑛𝑐𝑜𝑚𝑒‬ ‭17‬‭‬‭756‬

‭i)‬ ‭ROE =‬ ‭𝐴𝑣𝑒𝑟𝑎𝑔𝑒‬‭‭𝑆‬ ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟‬‭‬‭𝐸𝑞𝑢𝑖𝑡𝑦‬ ‭=‬ ‭81‬‭‬‭738‬ ‭= 21.72%‬

‭𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠‬‭‬‭𝑏𝑒𝑓𝑜𝑟𝑒‬‭‬‭𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡‬ ‭𝑁𝑒𝑡‬‭‬‭𝐼𝑛𝑐𝑜𝑚𝑒‬+[‭𝐼𝑛𝑒𝑟𝑒𝑠𝑡‬‭‭𝐸
‬ 𝑥𝑝𝑒𝑛𝑠𝑒‬‭‬‭‬(‭1‬−‭𝑇𝑎𝑥‬‭‭𝑅
‬ 𝑎𝑡𝑒‬)]
‭ii)‬ ‭ROA=‬ ‭𝐴𝑣𝑒𝑟𝑎𝑔𝑒‬‭‭𝑇 ‬ 𝑜𝑡𝑎𝑙‬‭‬‭𝐴𝑠𝑠𝑒𝑡𝑠‬
‭=‬ ‭𝐴𝑣𝑒𝑟𝑎𝑔𝑒‬‭‬‭𝑇𝑜𝑡𝑎𝑙‬‭‬‭𝐴𝑠𝑠𝑒𝑡𝑠‬
‭=‬
‭ 7‬‭‬‭756‬+[‭2‭‬‬‭251‬‭‬‭‬(‭1−
1 ‬ ‭35%‬)]
‭203‬‭‬‭105‬
‭= 9.46%‬

‭𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠‬‭‬‭𝑏𝑒𝑓𝑜𝑟𝑒‬‭‬‭𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡‬ ‭17‬‭‬‭756‬+[‭2‭‬‬‭251‬‭‬‭‬(‭1−
‬ ‭35%‬)]
‭iii)‬ ‭Profit Margin =‬ ‭𝑆𝑎𝑙𝑒𝑠‬‭‬‭𝑅𝑒𝑣𝑒𝑛𝑢𝑒‬
‭=‬ ‭469‬‭‬‭162‬
‭= 4.10%‬

‭𝑆𝑎𝑙𝑒𝑠‬‭‬‭𝑅𝑒𝑣𝑒𝑛𝑢𝑒‬ ‭469‬‭‬‭162‬
‭iv)‬ ‭Asset Turnover =‬ ‭𝑇𝑜𝑡𝑎𝑙‬‭‬‭𝐴𝑠𝑠𝑒𝑡𝑠‬
‭=‬ ‭203‬‭‬‭105‬ ‭= 2.31‬

‭𝐶𝑜𝑠𝑡‬‭‭𝑜
‬ 𝑓‬‭‬‭𝐺𝑜𝑜𝑑𝑠‬‭‬‭𝑆𝑜𝑙𝑑‬ ‭352‬‭‬‭488‬
‭v)‬ ‭APT =‬ ‭𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠‬‭‬‭𝑃𝑎𝑦𝑎𝑏𝑙𝑒‬
‭=‬ ‭59‬‭‬‭099‬
‭= 5.96‬

‭𝑆𝑎𝑙𝑒𝑠‬‭‬‭𝑅𝑒𝑣𝑒𝑛𝑢𝑒‬ ‭469‬‭‬‭162‬
‭vi)‬ ‭ART =‬ ‭𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠‬‭‬‭𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒‬ ‭=‬ ‭6‬‭‬‭768‬
‭= 69.32‬

‭𝐶𝑜𝑠𝑡‬‭‭𝑜
‬ 𝑓‬‭‬‭𝐺𝑜𝑜𝑑𝑠‬‭‬‭𝑆𝑜𝑙𝑑‬ ‭352‬‭‬‭488‬
‭vii)‬ ‭INVT =‬ ‭𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦‬
‭=‬ ‭43‬‭‬‭803‬
‭= 8.05‬

‭𝑆𝑎𝑙𝑒𝑠‬‭‬‭𝑅𝑒𝑣𝑒𝑛𝑢𝑒‬ ‭469‬‭‬‭162‬
‭viii)‬ ‭PPET =‬ ‭𝑃𝑃‬‭‭&
‬ ‬‭‬‭𝐸‬
‭=‬ ‭116‬‭‬‭681‬ ‭= 4.02‬

‭ix)‬ ‭C2C‬ ‭=‬ ‭–‬ ‭Weeks‬ ‭Payable‬ ‭(1/APT)‬ ‭+‬ ‭Weeks‬ ‭in‬ ‭Inventory‬ ‭(1/INVT)‬ ‭+‬ ‭Weeks‬
‭1‬ ‭1‬ ‭1‬
‭Receivable (1/ART) = –‬ ‭‬‭5‬.‭96‬ ‭+‬ ‭8‬.‭05‬ ‭+‬ ‭69‬.‭32‬ ‭= – 0.029 years = –1.51 weeks‬

‭FOR MACY’S:‬

‭𝑁𝑒𝑡‬‭‭𝐼‬ 𝑛𝑐𝑜𝑚𝑒‬ ‭1‬‭‬‭486‬

‭x)‬ ‭ROE =‬ ‭𝐴𝑣𝑒𝑟𝑎𝑔𝑒‬‭‭𝑆‬ ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟‬‭‬‭𝐸𝑞𝑢𝑖𝑡𝑦‬ ‭=‬ ‭6‬‭‬‭051‬ ‭= 24.56%‬
 ‭𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠‬‭‬‭𝑏𝑒𝑓𝑜𝑟𝑒‬‭‬‭𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡‬ ‭𝑁𝑒𝑡‬‭‬‭𝐼𝑛𝑐𝑜𝑚𝑒‬+[‭𝐼𝑛𝑒𝑟𝑒𝑠𝑡‬‭‭𝐸
‬ 𝑥𝑝𝑒𝑛𝑠𝑒‬‭‬‭‬(‭1‬−‭𝑇𝑎𝑥‬‭‭𝑅
‬ 𝑎𝑡𝑒‬)]
‭xi)‬ ‭ROA=‬ ‭𝐴𝑣𝑒𝑟𝑎𝑔𝑒‬‭‭𝑇‬ 𝑜𝑡𝑎𝑙‬‭‬‭𝐴𝑠𝑠𝑒𝑡𝑠‬
‭=‬ ‭𝐴𝑣𝑒𝑟𝑎𝑔𝑒‬‭‬‭𝑇𝑜𝑡𝑎𝑙‬‭‬‭𝐴𝑠𝑠𝑒𝑡𝑠‬
‭=‬
‭1‬‭‬‭486‬+[‭388‬‭‬‭‭‬‬(‭1−‬ ‭35%‬)]‭‬
‭20‬‭‬‭991‬
‭= 8.28%‬

‭𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠‬‭‬‭𝑏𝑒𝑓𝑜𝑟𝑒‬‭‬‭𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡‬ ‭1‬‭‬‭486‬+[‭388‬‭‬‭‭‬‬(‭1−
‬ ‭35%‬)]
‭xii)‬ ‭Profit Margin =‬ ‭𝑆𝑎𝑙𝑒𝑠‬‭‬‭𝑅𝑒𝑣𝑒𝑛𝑢𝑒‬
‭=‬ ‭27‬‭‬‭931‬
‭= 6.22%‬

‭𝑆𝑎𝑙𝑒𝑠‬‭‬‭𝑅𝑒𝑣𝑒𝑛𝑢𝑒‬ ‭27‬‭‬‭931‬
‭xiii)‬ ‭Asset Turnover =‬ ‭𝑇𝑜𝑡𝑎𝑙‬‭‬‭𝐴𝑠𝑠𝑒𝑡𝑠‬
‭=‬ ‭20‬‭‬‭991‬ ‭= 1.33‬

‭𝐶𝑜𝑠𝑡‬‭‭𝑜
‬ 𝑓‬‭‬‭𝐺𝑜𝑜𝑑𝑠‬‭‬‭𝑆𝑜𝑙𝑑‬ ‭16‬‭‬‭725‬
‭xiv)‬ ‭APT =‬ ‭𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠‬‭‬‭𝑃𝑎𝑦𝑎𝑏𝑙𝑒‬
‭=‬ ‭4‬‭‬‭951‬
‭= 3.38‬

‭𝑆𝑎𝑙𝑒𝑠‬‭‬‭𝑅𝑒𝑣𝑒𝑛𝑢𝑒‬ ‭27‬‭‬‭931‬
‭xv)‬ ‭ART =‬ ‭𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠‬‭‬‭𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒‬ ‭=‬ ‭371‬
‭= 75.29‬

‭𝐶𝑜𝑠𝑡‬‭‭𝑜
‬ 𝑓‬‭‬‭𝐺𝑜𝑜𝑑𝑠‬‭‬‭𝑆𝑜𝑙𝑑‬ ‭16‬‭‬‭725‬
‭xvi)‬ ‭INVT =‬ ‭𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦‬
‭=‬ ‭5‬‭‬‭308‬
‭= 3.15‬

‭𝑆𝑎𝑙𝑒𝑠‬‭‬‭𝑅𝑒𝑣𝑒𝑛𝑢𝑒‬ ‭27‬‭‬‭931‬
‭xvii)‬ ‭PPET =‬ ‭𝑃𝑃‬‭‭&
‬ ‬‭‬‭𝐸‬
‭=‬ ‭8‬‭‬‭196‬
‭= 3.41‬

‭xviii)‬ ‭C2C‬ ‭=‬ ‭–Weeks‬ ‭Payable‬ ‭(1/APT)‬ ‭+‬ ‭Weeks‬ ‭in‬ ‭Inventory‬ ‭(1/INVT)‬ ‭+‬ ‭Weeks‬
‭1‬ ‭1‬ ‭1‬
‭Receivable (1/ART) = –‬ ‭3‬.‭38‬ ‭+‬ ‭3‬.‭15‬ ‭+‬ ‭75‬.‭29‬ ‭= 0.035 years = 1.82 weeks‬

‭b)‬ ‭For‬ ‭each‬ ‭of‬ ‭the‬ ‭metrics‬ ‭in‬ ‭part‬ ‭(a),‬ ‭indicate‬ ‭which‬ ‭company‬ ‭is‬ ‭doing‬ ‭better.‬ ‭For‬ ‭each‬
‭ etric,‬ ‭speculate‬ ‭(with‬ ‭justification)‬ ‭on‬ ‭the‬ ‭most‬ ‭important‬ ‭(relevant)‬ ‭supply‬ ‭chain‬
m
‭driver(s) that might explain the difference in performance?‬

‭ OE‬‭:‬‭As‬‭higher‬‭is‬‭better,‬‭we‬‭can‬‭see‬‭that‬‭Macy’s‬‭is‬‭doing‬‭better‬‭with‬‭Return‬‭on‬‭equity.‬
R
‭Since‬ ‭this‬ ‭looks‬ ‭at‬ ‭net‬ ‭income,‬ ‭which‬ ‭takes‬ ‭into‬ ‭account‬ ‭many‬ ‭sources‬ ‭of‬ ‭revenue‬‭and‬
‭income,‬ ‭pretty‬ ‭much‬ ‭all‬ ‭the‬ ‭performance‬ ‭drivers‬ ‭are‬ ‭relevant‬ ‭to‬ ‭explain‬ ‭the‬ ‭difference.‬
‭For‬ ‭example,‬ ‭inbound‬ ‭transportation‬‭expenses‬‭are‬‭booked‬‭as‬‭costs‬‭of‬‭goods‬‭sold,‬‭which‬
‭ultimately‬ ‭has‬ ‭an‬ ‭impact‬ ‭on‬ ‭net‬ ‭income.‬ ‭It’s‬ ‭possible‬ ‭Macy’s‬ ‭is‬ ‭doing‬ ‭a‬ ‭better‬ ‭job‬ ‭at‬
‭keeping‬‭it’s‬‭transportation‬‭costs‬‭low,‬‭which‬‭helps‬‭retain‬‭more‬‭of‬‭its‬‭revenue‬‭and‬‭achieve‬‭a‬
‭better ROE.‬
‭ROA‬‭:‬ ‭Higher‬ ‭is‬ ‭better‬ ‭as‬ ‭well,‬ ‭this‬ ‭time‬ ‭Wal-mart‬ ‭comes‬ ‭out‬ ‭on‬ ‭top.‬ ‭Relevant‬ ‭drivers‬
‭could‬ ‭be‬ ‭the‬ ‭ones‬ ‭considered‬ ‭as‬ ‭assets‬ ‭(primarily‬ ‭Inventory‬ ‭and‬ ‭Facilities).‬ ‭Having‬ ‭a‬
‭better‬ ‭ROA‬ ‭means‬ ‭you‬ ‭are‬ ‭better‬ ‭at‬ ‭generating‬ ‭earnings‬ ‭with‬‭the‬‭assets‬‭you‬‭have.‬‭This‬
‭means‬‭Walmart‬‭is‬‭better‬‭at‬‭using‬‭things‬‭like‬‭inventory‬‭and‬‭facilities‬‭(warehouses,‬‭DCs)‬‭to‬
‭generate profit‬
‭Profit‬‭Margin‬‭:‬‭Macy’s‬‭is‬‭doing‬‭better‬‭with‬‭profit‬‭margin,‬‭meaning‬‭it‬‭is‬‭doing‬‭a‬‭better‬‭job‬
‭at‬‭converting‬‭sales‬‭into‬‭profit.‬‭A‬‭relevant‬‭driver‬‭here‬‭would‬‭be‬‭pricing.‬‭Pricing‬‭decisions‬
 a‭ ffect‬‭sales‬‭revenue‬‭and‬‭customer‬‭demand.‬‭By‬‭accurately‬‭pricing‬‭the‬‭product,‬‭a‬‭company‬
‭typically‬ ‭is‬ ‭able‬ ‭to‬ ‭generate‬ ‭more‬ ‭revenue.‬ ‭We‬ ‭also‬ ‭have‬ ‭other‬ ‭metrics‬ ‭that‬ ‭affect‬
‭expenses,‬ ‭like‬ ‭inventory‬ ‭facilities,‬ ‭etc..‬ ‭Since‬ ‭a‬ ‭good‬‭profit‬‭margin‬‭means‬‭being‬‭able‬‭to‬
‭keep a larger share of that sales revenue, and keeping costs low is a way to do this‬
‭Asset‬ ‭Turnover‬‭:‬ ‭Higher‬‭is‬‭better‬‭here,‬‭and‬‭so‬‭Walmart‬‭is‬‭doing‬‭better.‬‭This‬‭means‬‭they‬
‭are‬ ‭better‬ ‭at‬ ‭turning‬ ‭over‬ ‭their‬ ‭assets‬ ‭into‬ ‭revenue.‬ ‭This‬ ‭means‬ ‭less‬ ‭of‬ ‭their‬ ‭assets‬ ‭are‬
‭sitting‬‭idle.‬‭A‬‭relevant‬‭metric‬‭here‬‭would‬‭be‬‭inventory.‬‭More‬‭accurate‬‭stocking‬‭decisions‬
‭means‬‭stock‬‭stays‬‭in‬‭storage‬‭for‬‭less‬‭time,‬‭and‬‭therefore‬‭is‬‭more‬‭rapidly‬‭being‬‭used.‬‭This‬
‭results‬ ‭in‬ ‭assets‬ ‭being‬ ‭turned‬‭over‬‭quickly,‬‭creating‬‭a‬‭higher‬‭asset‬‭turnover.‬‭However,‬‭it‬
‭could‬ ‭also‬ ‭mean‬ ‭the‬ ‭company‬ ‭uses‬ ‭more‬ ‭assets‬ ‭like‬‭inventory‬‭compared‬‭to‬‭other‬‭assets‬
‭like‬ ‭PPE.‬ ‭These‬ ‭assets‬ ‭are‬ ‭harder‬ ‭to‬ ‭turn‬ ‭into‬ ‭revenue,‬ ‭as‬ ‭inventory‬ ‭often‬ ‭directly‬
‭becomes the product that is sold to consumers.‬
‭APT‬‭:‬ ‭Here,‬ ‭lower‬ ‭is‬ ‭better,‬ ‭and‬ ‭Macy’s‬ ‭is‬ ‭doing‬ ‭better‬ ‭in‬ ‭this‬ ‭category.‬ ‭We‬ ‭could‬
‭primarily‬ ‭link‬ ‭this‬ ‭to‬ ‭sourcing‬ ‭metrics‬ ‭as‬ ‭a‬ ‭way‬ ‭to‬ ‭explain‬ ‭the‬ ‭difference.‬ ‭Particularly,‬
‭supplier‬ ‭selection‬ ‭is‬ ‭a‬ ‭primary‬ ‭reason‬ ‭why.‬ ‭Selecting‬ ‭your‬ ‭suppliers‬ ‭adequately‬ ‭is‬ ‭key.‬
‭Not‬ ‭only‬ ‭that,‬ ‭but‬ ‭having‬ ‭a‬ ‭better‬ ‭relationship‬ ‭with‬ ‭them‬ ‭can‬ ‭afford‬ ‭you‬ ‭more‬ ‭time‬ ‭to‬
‭repay‬‭owed‬‭money,‬‭as‬‭they‬‭trust‬‭you‬‭to‬‭pay‬‭them‬‭back‬‭eventually.‬‭This‬‭is‬‭means‬‭you‬‭can‬
‭use‬ ‭supplier’s‬ ‭money‬ ‭for‬ ‭longer‬ ‭to‬ ‭supply‬ ‭your‬ ‭own‬ ‭operations,‬ ‭hence‬ ‭explaining‬ ‭the‬
‭difference is accounts payable turnover.‬
‭ART‬‭:‬ ‭Higher‬ ‭is‬ ‭better,‬ ‭and‬ ‭Macy’s‬ ‭once‬ ‭again‬ ‭is‬ ‭better.‬ ‭A‬ ‭higher‬ ‭ART‬ ‭means‬ ‭you‬ ‭are‬
‭getting‬ ‭paid‬ ‭quicker‬ ‭from‬ ‭the‬ ‭people‬ ‭who‬ ‭owe‬ ‭you‬ ‭money‬ ‭(wholesalers,‬ ‭retailers,‬
‭customers).‬‭This‬‭means‬‭you‬‭have‬‭more‬‭cash‬‭on‬‭hand‬‭at‬‭a‬‭given‬‭time‬‭which‬‭can‬‭be‬‭used‬‭to‬
‭finance‬ ‭operations.‬ ‭Many‬ ‭metrics‬ ‭could‬ ‭be‬ ‭relevant‬ ‭here,‬ ‭such‬ ‭as‬ ‭transportation.‬‭Better‬
‭more‬‭responsive‬‭transportation‬‭methods‬‭allows‬‭for‬‭quickly‬‭delivery‬‭of‬‭finished‬‭products.‬
‭Typically,‬‭these‬‭are‬‭bought‬‭on‬‭account‬‭before‬‭it‬‭is‬‭delivered.‬‭If‬‭retailers‬‭receive‬‭products‬
‭quickly,‬‭they‬‭are‬‭able‬‭to‬‭sell‬‭them‬‭quicker.‬‭This‬‭therefore‬‭means‬‭they‬‭are‬‭also‬‭able‬‭to‬‭pay‬
‭us back quickly from the revenue they made.‬
‭INVT‬‭:‬‭Again‬‭higher‬‭is‬‭best,‬‭and‬‭Walmart‬‭is‬‭the‬‭better‬‭of‬‭the‬‭two.‬‭You‬‭could‬‭attribute‬‭this‬
‭to‬‭information‬‭drivers.‬‭Good‬‭information‬‭flow‬‭between‬‭stakeholders‬‭is‬‭critical‬‭for‬‭things‬
‭like‬ ‭stocking‬ ‭decisions‬ ‭and‬ ‭demand‬ ‭forecasting.‬ ‭If‬ ‭we‬ ‭better‬ ‭plan‬ ‭demand,‬ ‭we‬ ‭are‬
‭required‬ ‭to‬ ‭carry‬ ‭less‬ ‭inventory‬ ‭as‬ ‭safety‬ ‭stock,‬ ‭which‬ ‭reduces‬ ‭average‬ ‭inventory‬ ‭and‬
‭raises INVT.‬
‭PPET‬‭:‬ ‭Higher‬ ‭is‬ ‭best,‬ ‭and‬ ‭Walmart‬ ‭is‬ ‭doing‬ ‭better‬ ‭here.‬ ‭This‬ ‭metric‬ ‭determines‬ ‭how‬
‭quickly‬ ‭property,‬‭plant,‬‭and‬‭equipment‬‭assets‬‭are‬‭being‬‭converted‬‭to‬‭revenue.‬‭Obviously,‬
‭the‬‭most‬‭relevant‬‭metric‬‭is‬‭Facilities.‬‭By‬‭using‬‭these‬‭resources‬‭more‬‭efficiently,‬‭you‬‭can‬
‭possibly‬‭generate‬‭more‬‭revenue‬‭for‬‭the‬‭same‬‭amount‬‭of‬‭PPE.‬‭It’s‬‭possible‬‭Walmart‬‭wins‬
‭in‬ ‭this‬ ‭category‬ ‭because‬ ‭of‬ ‭the‬ ‭massive‬ ‭economies‬ ‭of‬ ‭scale‬ ‭it‬ ‭is‬ ‭capable‬ ‭of‬ ‭achieving.‬
‭Therefore,‬ ‭it‬ ‭can‬ ‭generate‬ ‭more‬ ‭revenue‬ ‭with‬ ‭a‬ ‭smaller‬ ‭relative‬ ‭amount‬ ‭of‬ ‭PPE,‬‭which‬
‭raises the turnover rate.‬
‭C2C‬‭:‬ ‭Here,‬ ‭lower‬ ‭is‬ ‭better.‬ ‭This‬ ‭measures‬ ‭the‬ ‭amount‬ ‭of‬ ‭time‬ ‭between‬ ‭when‬ ‭cash‬ ‭is‬
‭incurred‬‭as‬‭a‬‭cost,‬‭and‬‭when‬‭it‬‭comes‬‭back‬‭collected‬‭revenue.‬‭A‬‭relevant‬‭metric‬‭would‬‭be‬
‭inventory.‬ ‭Inventory‬ ‭decisions‬ ‭have‬ ‭an‬ ‭impact‬ ‭on‬ ‭both‬‭accounts‬‭receivable‬‭and‬‭payable‬
‭which‬ ‭then‬ ‭determines‬ ‭cash‬ ‭is‬ ‭received‬ ‭or‬ ‭paid.‬ ‭Inventory‬ ‭is‬ ‭also‬ ‭a‬ ‭factor‬ ‭in‬ ‭C2C,‬‭and‬
 g‭ ood‬ ‭inventory‬ ‭performance‬ ‭typically‬ ‭means‬ ‭less‬ ‭time‬ ‭in‬ ‭inventory‬ ‭which‬ ‭results‬ ‭in‬ ‭a‬
‭better C2C.‬