Calculating Gross Profit Margin and Inventory Turnover

The following table presents sales revenue, cost of goods sold, and inventory amounts for three specialty retailers,

Tiffany & Co., Best Buy, and RH.

($ millions)20172016

Tiffany & Co.

Revenues $4,170 $4,002

COGS $1,565 $1,512

Inventory $2,254 $2,158

Best Buy

Revenues $42,151 $39,403

COGS $32,275 $29,963

Inventory $5,209 $4,864

RH

Revenues $2,440 $2,135

COGS $1,591 $1,455

Inventory $527 $752

a. Compute the gross profit margin (GPM) for each of these companies for 2017 and 2016.

Note: Round GPM answers to one decimal place (ex: 0.2345 = 23.5%).

Tiffany & Co. Best Buy RH

2017 2016 2017 2016 2017 2016

Gross profit $ $ $ $ $ $

GrossProfitMargin(GPM) % % % % % %

b. Compute the inventory turnover ratio and the average inventory days outstanding for 2017 for each company.

Do not round until your final answer.

Round inventory turnover toone decimal place. Round average inventory days outstanding to nearest whole number.

Tiffany Best Buy RH

Inventory turnover 0 0 0

Avg. inventory days outstanding 0 0 0