Question
2015 2014 2013 Inventory turnover 7.97 7.98 8.09 A/R turnover 72.83 71.33 71.65 Total Asset turnover 2.35 2.33 2.38 Average Collection 5.01 5.12 5.09 I
2015 2014 2013
Inventory turnover 7.97 7.98 8.09
A/R turnover 72.83 71.33 71.65
Total Asset turnover 2.35 2.33 2.38
Average Collection 5.01 5.12 5.09
I am having issues with explaining the finances of the company based on Ratio analysis
Inventory turnover is low suggesting that the company is struggling to sell it's products
A/R turnover is over 2 months suggesting that the company ability to collect form its clients is ????
Total Assets ???
Average Collection suggest that the company collects money every 5 days after a sale??
I am confused about how the AR turnover is high and the average collection period is low
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started