The Nestl Group is the world's leading nutrition, health, and wellness company. Selected financial information is presented

The Nestlé Group is the world's leading nutrition, health, and wellness company. Selected financial information is presented below for the period 2004-2009 (amounts are in millions of Swiss francs):

\section*{Required:}
1. Compute the following ratios for each of the years 2005-2009:

a. Trade payables turnover

b. Inventory turnover

c. Trade receivables turnover 2. One of the measures of a company's effectiveness in utilizing cash resources is the cash conversion cycle, which is the difference between the average number of days needed to convert inventory to cash and the average number of days to pay trade suppliers. Compute the cash conversion cycle for each of the years 2005-2009. Did Nestlé improve on its management of cash? Explain.

Transcribed Image Text:

2009 2008 2007 2006 2005 2004 Net Sales 107,618 109,908 107,552 98,458 91,115 86,769 Trade receivables 9,425 10,552 12,025 11,693 11,461 9,587 Inventorics. 7,734 9,342 9,272 8,029 8,162 7.025 Cost of sales 43,467 47,339 45,037 40,713 37,946 36.146 Trade payables 10,033 12,608 14,179 12,572 11,117 9,107