Calculating Gross Profit Margin and Inventory Turnover

The following table presents sales revenue, cost of goods sold, and inventory amounts for three retailers of fine jewelry, Tiffany & Co., Zale Corporation, and Blue Nile, INC. (an internet retailer)

($ Millions)	2013	2012
Tiffany & Co.
Revenues	$4,131	$3,879
Cost of goods sold	1,741	1,666
Inventory	2,427	2,334
Zale Corporation
Revenues	$1,938	$1,902
Cost of goods sold	954	941
Inventory	793	757
Blue Nile, Inc.
Revenues	$475	$435
Cost of goods sold	416	360
Inventory	60	48

a. Compute the gross profit margin (GPM) for each of these companies for 2013 and 2012.

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

Tifffany Zale Blue Nile

	2013		2012		2013		2012		2013		2012
Gross Profit	$		$		$		$		$		$
Gross profit margin (GPM)		%		%		%		%		%		%

b. Compute the inventory turnover ratio and the average inventory days outstanding for 2013 for each company.

Do not round until your final answer.

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

	Tiffany	Zale	Blue Nile
Inventory turnover
Avg. inventory days outstanding