Data analytics is the process of examining data sets in order to draw conclusions about the information they contain. If you have not completed any of the prior data analytics cases, follow the instructions listed in the Chapter 1 Data Analytics case to get set up. You will need to watch the videos referred to in the Chapters 1 - 3 Data Analytics cases. No additional videos are required for this case. All short training videos can be found here: https://www.tableau.com/learn/training#getting-started. 

In prior chapters, you applied Tableau to examine a data set and create calculations to compare two companies’ financial information. In this case, you continue in your role as an analyst conducting introductory research into the relative merits of investing in one or both of these companies. This time you assess the companies’ receivables management and how effective the companies are in managing the investment in receivables. 

Required: 

Use Tableau to calculate (a) receivables turnover ratios, and (b) average collection periods for each of the two companies in each year from 2012 to 2021. Based upon what you find, answer the following questions: 

1. What is the receivables turnover ratio for Big Store (a) in 2012 and (b) in 2021? 

2. What is the receivables turnover ratio for Discount Goods (a) in 2012 and (b) in 2021? 

3. Which company exhibited more favorable receivables management, as measured by average collection period, in 2020, Big Store or Discount Goods? What was that company’s average collection period, and is it longer or shorter than the industry average in 2020? The average collection period for the retail industry sector is 4.0 in 2020 and 5.1 in 2021. 

4. Which company exhibited more favorable receivables management, as measured by average collection period, in 2021, Big Store or Discount Goods? What was that company’s average collection period, and is it longer or shorter than the industry average in 2021?