Question
Evaluating Turnover and Nontraditional Efficiency Ratios Across Industries The following information is taken from publicly traded retailers. The data come from the balance sheet, income
Evaluating Turnover and Nontraditional Efficiency Ratios Across Industries The following information is taken from publicly traded retailers. The data come from the balance sheet, income statement, and Item 2 on the companies Form 10K filings. Use the information to answer the requirements.
Average | Retail SQ | # of | |||
---|---|---|---|---|---|
$ millions | Revenue | COGS | Inventory | Footage (000s) | Stores |
Autozone | $10,660 | $4,902 | $3,717 | 41,066 | 6,202 |
Costco | 134,497 | 121,715 | 9,915 | 110,700 | 762 |
Home Depot | 102,793 | 71,043 | 12,670 | 237,700 | 2,287 |
Lowes | 67,744 | 48,396 | 11,378 | 209,000 | 2,015 |
OReilly | 9,059 | 4,237 | 2,947 | 38,455 | 5,219 |
Walmart | 486,143 | 374,623 | 41,825 | 1,129,000 | 11,361 |
Required a. Compute the days inventory outstanding (DIO) for each company. Note: Do not round until your final answer; round your final answer to the nearest whole day.
DIO | ||
---|---|---|
AUTOZONE | .... | days |
COSTCO | .... | days |
HOME DEPOT | ..... | days |
LOWE'S | ..... | days |
O'REILLY | ..... | days |
WALMART | ..... | days |
b. Compute the gross profit margin for each company. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
DIO | |
---|---|
AUTOZONE | ...... |
COSTCO | ...... |
HOME DEPOT | ..... |
LOWE'S | ..... |
O'REILLY | .... |
WALMART | ..... |
c. Compute the following two nontraditional efficiency metrics: Revenue per square foot and Revenue per store. Note: Round your answers to two decimal places (for example, enter 6.78 for 6.77555).
Revenue per SF | Revenue per store | |
---|---|---|
AUTOZONE | ...... | ...... |
COSTCO | ..... | ..... |
HOME DEPOT | ..... | ..... |
LOWE'S | ...... | ..... |
O'REILLY | .... | ..... |
WALMART | ..... | ..... |
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