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It’s more efficient in that it gets to hang onto its cash longer, earning more interest and reducing the need for short-term borrowing.
In general you want days of inventory on hand to short (but not too short), days of sales outstanding to be short (but not too short), and days of payables to be long (but not too long).
Here, their inventory management is getting worse (DOH is increasing each year), receivabled management is stable (DSO is nearly constant), and payables management is improving (DOP is increasing each year).
Thank you.
My pleasure.