If a supplier's terms are thirty days net, what is the best turnover period?

When a supplier's terms are stated as thirty days net, it implies that the payment for the goods received is due within thirty days. The best turnover period in this context would be less than thirty days. This practice demonstrates effective cash flow management and indicates that the pharmacy is able to sell its inventory and generate revenue quickly enough to meet its payment obligations to the supplier without incurring any penalties or interest for late payments.

By maintaining a turnover period shorter than thirty days, the pharmacy can reinvest funds into its operations more rapidly, minimize the risk of running into liquidity issues, and possibly take advantage of discounts for early payments, if applicable. It further highlights efficient inventory management and sales strategies that enable the business to operate smoothly and profitably.