Evaluating Turnover Ratios Across Industries The table that follows reports balance sheet and income statement information for Nike, Best Buy, Johnson

& Johnson, and Boeing from their year-end 2015 SEC filings.

$ millions Sales Cost of Goods Sold Inventory, 2015 Inventory, 2014 PPE, Net Nike . . . . . . . . . . . . . . . . . . . . . $30,601 $16,534 $ 4,337 $ 3,947 $ 3,011 Best Buy. . . . . . . . . . . . . . . . . . 39,528 30,334 5,051 5,174 2,346 Johnson & Johnson . . . . . . . . . 70,07421,5368,0538,18415,905 Boeing (product sales) . . . . . . . 85,25573,44647,25746,75612,076 Required

a. Compute the days inventory outstanding for each company for 2015.

b. Compare the days inventory outstanding across the four companies and consider the industries in which they operate. What do we observe?

c. Compute the PPE turnover for each company.

d. Why is the PPE turnover for Best Buy so much higher than that for Boeing?

e. Which metric is likely easier for these companies to improve, inventory days outstanding or PPE turnover? Explain.