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2014 2015 2016** Industry Average*** Inventory Turnover (CGS*/Inv.) ) 3.7 3.2 3.5 --7.9 --3.1 --2.0 Fixed Asset Turnover (Sales/Net PPE) 12 14.9 11.7 --15.8 --10.3
2014 | 2015 | 2016** | Industry Average*** | |
---|---|---|---|---|
Inventory Turnover (CGS*/Inv.) ) | 3.7 | 3.2 | 3.5 | --7.9 |
--3.1 | ||||
--2.0 | ||||
Fixed Asset Turnover (Sales/Net PPE) | 12 | 14.9 | 11.7 | --15.8 |
--10.3 | ||||
--5.4 | ||||
Total Asset Turnover (Sales/Total Assets) | 9.3 | 8.6 | 8.6 | --5.7 |
--8.2 | ||||
--18.4 |
Evaluation: Interpret each of the ratios and review the >Financial Ratios Guidelines document for direction. Do you see any red flags? Does it appear as though the company is making efficient use of its assets to generate sales?
I need help writing an educated evaluation of this company based on the numbers I provided in the chart.
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