Inventory turnover

are total inventory and asset management and so on. Inventory is very important, because it is the fastest flow of assets into cash in a normal business process, and fundamentally affects the cash flow Inventory turnover measures the conversion speed between inventory and sales and is defined by the average inventory divided by the cost of goods sold. Aristocrat 's inventory turnover of 8.42times is higher than the industrial average level, but there is only 1.99 times inventory turnover for…

Red Soda Company vs. Blue Soda Company The Red soda company and the blue soda company was compared financially to determine financial ratios, turnovers, and coverages. Such ratios included the current ratio and the debt to asset ratio. Accounts receivable turnover and asset turnover was used to determine the stability of the company, and Current cash debt coverage was used to help determine liquidity. The following are the results. Liquidity Ratios Liquidity ratios are used to measure a…

It will discuss Target’s inventory method, net purchases, and inventory turnover. The inventory method used by Target is the last-in, first-out (LIFO) method.This inventory method is when the ending inventory is the oldest costs for the period. Target values its inventory by including cost to suppliers, freight costs, import costs, operating costs, estimated losses, and many other expenses. They calculate the inventory costs by using the cost-to-retail ratio and inventory retail value. The LIFO…

of receivables for Simeon Company is decrease. 3 Inventory turnover =Cost of goods sold Average inventory 2009 $345,500/(($82,500+54,000)/2) = 5.06 times 2010 $411,225/(($112,500+82,500)/2) = 4.22 times The inventory turnover is decrease from year 2009, 5.06 times to 2010, 4.22 times. Therefore , the efficiency of inventory management for Simeon Company is decrease. 4 Days’ sales in inventory =( Ending inventory)/(Cost of goods sold ) X 365 2009…

When compare Tal Lanka Hotels PLC’s stock turnover period with Sigiriya Village Hotels PLC, it seems that Tal Lanka Hotels PLC’s stock management strategies are highly efficient. It is recommended to match stock management strategies with customer demand. Because unnecessary stock holding leads to higher stock holding cost and damage to stock. Whereas holding less stock level creates problems in customer demand. c) Debtor turnover…

strength and weakness’s, and will also evaluate the short and longer term prospects of Cango. CanGo had an Inventory Turnover Ratio, for instance, is .28 Amazon currently has an Inventory Turnover Ratio of…

interest dues. The ICR of Adani has increased by a very small margin in 2015-16 as compared to 2014-15. The EBIT has increased as well as the interest expenses / finance costs have increased. This is the reason for the rise in ICR. C. TURNOVER RATIOS The turnover ratios are the ratios wherein an amount of income statement is divided by an asset or a group of…

explores Home Depot SWOT analysis. The company overview was briefly examined in the context of home improvement products. Financial performance, multi-channel selling and multiple categories are the company’s major strengths, whereas debt and inventory turnover ratio remain major areas of concern. In the future, stringent regulations, expansion by the competitor and foreign exchange risks could affect the business performance. However, expanding the retail market in the US, expanding e-commerce…

receivable turnover in 2013 is 69.25 times and 75.21 times for 2012 (see Table 2). Wal-Mart’s average collection calculation for 2013, is 365/69.25 = 5.3 days and for 2012, 365/75.21 = 4.9 days (Mayo, 2012). Comparing Wal-Mart’s turnover ratio with the industry norm, Wal-Mart surpasses the industries turnover ratio (see Table 5). For 2013 the industry ratio, turnover is seven times a year (365/7 = 52.1), which is every 52 days (University of Phoenix, 2014)(see Table 5). Higher turnover rate…

My team has analyzed the financial positions of American Eagle Outfitters and The Buckle Company. We have analyzed the inventory of both companies to see how profitable they may be. From our research, we present to you the following information. American Eagle evaluates its merchandise inventory at the lower of average cost or market, using retail method. Average cost includes merchandise design and sourcing costs and related expenses. American Eagle records its merchandise receipts at the time…