Inventory turnover

INVENTORY Inventory is generally classified as Independent demand and dependent demand. Independent demand An inventory of an item that its demand is not dependent upon the demand of another item, these are finished goods e.g. a car, which orders come from external customers or manufactured for stock or sale. These inventories base on confirmed customer orders, forecasts, estimates and past historical data. Dependent demand An inventory of an item that depends on another item e.g. raw materials…

higher due to the inclusion of inventory in the calculation, the bulk of Nintendo’s current assets are in the form of cash and cash equivalents, indicating that it is highly liquid. Nintendo uses little debt leverage and accrues minimal liabilities, which explains why their current/quick assets cause the current and quick ratios to be greater than 1 and why these ratios have steadily increased over the past 3 years. Asset Management Nintendo’s inventory turnover has increased over the past…

2% PepsiCo 6,954 7,041 -84 -1% Total Assets Invested in Inventory Coca-Cola has total inventory of $ 3,277 and its total asset is $ 90,055.Therefore, it shows 3.63 percent of inventory to total assets for Coca-Cola, and PepsiCo has 4.03 percent of inventory to its total assets. Maintaining the right amount of inventory is an important part of managing the company’s business resources and its cash flows. If there is too much inventory, it takes up valuable resources and cash flows that…

because it has to hold slow-moving inventories. For instance, River Island Clothing limited (RICL), a similar business to PLL in the same industry, reported 2.9 in terms of current ratio in the 2015 (Company Check, 2016). Comparing the level achieved by RICL, the current ratio of Pace Leisurewear Ltd was insufficient, revealing PLL suffered from inadequate capacity to satisfy its current liabilities with its current…

its assets than Amazon.com, Inc. Furthermore, Wal-Mart Stores, Inc. has higher number of employees which is mostly due to having physical stores and Amazon.com, Inc. being an electronic retailer. Inventory turnover for both companies are nearly the same which this ratio means the number of times inventory is sold or used in a time period. Wal-Mart Stores, Inc. has a higher asset…

likely chance of being able to borrow money from lenders which would make it even harder for them if they want to expand. If Sioux Appliances don’t begin to utilise assets effectively then they will incur the consequences of lower quality inventory and theft of inventory could be…

short term assets without selling the inventory. Pos Malaysia has the quick ratio of 1.4 whereas the Gdex has 396.9. This means the chances of Gdex paying off it current liabilities without relying on the level on sales of inventory is faster than Pos Malaysia. Moreover, Pos Malaysia should increasing inventory turnover rate by faster conversion of inventory into cash. This would rise the result of the quick ratio. For example, to sell off the old inventory and turn it into cash and…

1.0 The Warehouse Layout and Design According to Thomas L.Freese, nowadays the strategic of warehousing is changing rapidly. It is because, the number of shipments is creasing while the number of inventory is decreasing. Therefore, now the warehouse layout and design is different if compare to the past, such as now we need bigger assembly areas for the shipment, picking ares and pick slot but smaller the storage areas. (Freese, 2000, p. 1) 1.1 The Important of Warehouse Layout and Design The…

manufacturing cost. Lastly, process design affects inventory because if a product is not designed to the specific needs of the company the products (inventory) is left behind, accumulating…

currently in good financial standing, and that there ability to meet their current obligations is improving. However, there are also detriments to this option. The current ratio does not show that Dynashears is significantly low on cash. The excess inventories they have been unable to sell make up a significant proportion of Dynashears assets. Their current quick ratio, which is a measure of a businesses ability to meet current obligation through the use of its liquid assets, is at decent, but…