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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 10-K filings. Use the information to answer the requirements. Average Inventory # of Stores COGS $ millions Revenue Autozone...... $ 11,221 Costco.... 141,576 Home Depot 108,203 Lowe's..... 71,309 O'Reilly 9,536 Walmart...... 511,729 $ 4,902 121,715 71,043 48,396 4,237 374,623 $ 3,913 10,437 13,337 11,977 3,102 44,026 Retail SQ Footage (000s) 41,066 110,700 237,700 209,000 38,455 1,129,000 6,202 762 2,287 2,015 5,219 11,361 Required a. Compute the days inventory outstanding (DIO) for each company. b. Compute the gross profit margin for each company. c. Compare the DIO and gross profit margin for each of the three combinations of competitors. What do we observe? How are the two ratios related? d. Compute the following two nontraditional efficiency metrics: Revenue per square foot and Revenue per store. What do we observe
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