Intro+ question: Imported steel products
Hi everyone - my name is Muaaz. I’m a CPA in Toronto and I work in financial due diligence. Would be more than happy to provide proposals/quotes on tax/financial/HR diligence for target companies in Canada. I am interested in a search in the future. Thrilled to be here amongst so many talented individuals!
Question:
Does anyone have knowledge of importing terms? I am seeing a scenario where a light value added manufacturer/labeller imports goods on payment terms “payment on order” and the goods can take a 6-10 weeks to arrive. Resulting in quite high inventory balances and also very high DIO (200+). Would appreciate thoughts on this and how to go about determining what sort of margins would justify the long DIO and working cap tie up.