Question
How can I respond to this discussion? Industry Company Current Ratio 2.06 2.08 Quick Ratio 1.59 1.36 Inventory Turnover 4.64 5.23 AMD is a technology
How can I respond to this discussion? Industry Company Current Ratio 2.06 2.08 Quick Ratio 1.59 1.36 Inventory Turnover 4.64 5.23 AMD is a technology company that builds Processors and Video cards, as well as server hardware and memory products(RAM). Its main competitor is Intel Corporation and other semiconductor manufacturers capable of building and licensing x86 and ARM processors. The competitor to the video card market is Nvidia. Inventory turnover is an efficiency ratio comparing the cost of goods sold, with inventory for the period. AMDs inventory ratio shows an industry similar, overall inventory turnover for the technology industry. A ratio between 4 and 6 is an ideal ratio for any companys Inventory Turnover figure. The higher the inventory turnover the better in all cases of measurement, as weak sales would indicate lower turnover and lower ratio number. Low turnover shows the company is lacking in marketing, has a bad product line, or cant compete in its own industry, as well as many other factors that simply create a problem for low turnover of product. High inventory turnover means they are doing things correctly to sell products and manage operating costs and inventories. AMD does better than the industry with current ratio and inventory turnover but falls short on Quick Ratio.
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