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> I read that a can of green beans sold by WM will turn over 6 times before they have to pay the vendor for the first can. I can't parse this but am curious wh
by retsibsi 7y ago
> I read that a can of green beans sold by WM will turn over 6 times before they have to pay the vendor for the first can.
I can't parse this but am curious what it means; can someone explain?
- MegaDeKay 7y agoI believe he is talking about payment terms like "net 30 days". A made up example: Walmart buys a can of beans and promised to pay the seller 30 days later. During those thirty days, they buy five or six more order of beans to make up for that first sale and the other ongoing sales, each payment being thirty days later. During each of those 30 day periods, that cash is sitting in Walmart's pocket for them to invest etc.
- retsibsi 7y agoThanks!