DOH and Receivables Turnover Example in CFAI

The answer of the example on page 604 says: 1. Anson Inc.'s DOH of only 4.76 indicated that it was less efficient at inventory management than Clarence Inc., which had DOH of 39.73. Is this correct? I thought that the lower DOH, the better is the inventory management… 2. Clarence’s receivables turnover of 8.35 times indicated that it was more efficient at receivables management than Anson, which had receivables turnover of 10.75. Again, I think this is also wrong…The higher the rec. turnover, the better, is it not? Thanks…

Anybody :frowning: ?

what is DOH?

days of inventory on hand

Agree w/ you minocfa