I am using the companies nvidia and intel to compare and contrast their cost of goods, ending inventory, inventory turnover, and Days' sells in inventory for both

using nvidia Category: General Module 3 forum vs Intel Decision analysis: Inventory turnover and days' sales in inventory Inventory turnover Inventory turnover, also called merchandise inventory turnover, tells how many times a company turns over (sells) its inventory in a period. It is used to assess whether management is doing a good job controlling the amount of inventory. A low ratio means the company may have more inventory than it needs. A very high ratio means inventory might be too low. This can cause lost sales if customers much back-order merchandise. Inventory turnover has no simple rule except to say a high ratio is preferable if inventory is adequate to meet demand. Inventory turnover = cost of goods sold/average inventory Days' Sales in Inventory Day's sales in inventory is a ratio that shows how much inventory is available in terms of the number of days' sales. It can be interpreted as the number of days one can sell from existing inventory if no new items are purchased. This ratio reveals the buffer against out-of-stock inventory and is useful in evaluating how quickly inventory is being sold. Days' sales in inventory = (Ending inventory/cost of goods sold) x 365 x Merchandisers must plan and control inventory purchases and sales. Costco's inventory at the end of 2017 was 59,834 million. This inventory was 57%of its current assets and 27% of its total assets. Company $ millions Current Year 1 Year Ago 2 Years Ago Costco Cost of goods sold $132.886 $123,152 $111,882 Ending inventory $11,395 $11,040 $9,834 Inventory turnover 11.8 times 11.9 times Days' sales in inventory 31.3 days 32.7 days 32.1 days Walmart Inventory turnover 8.8 times 8.6 times 8.3 times Days' sales in inventory 41.9 days 42.8 days 43.5 days Costco's 2017 inventory turnover of 11.9 times means that it turns over its inventory 11.9 times per year. Costco's inventory turnover exceeded Walmart's turnover in each of the 3 years. This is a positive for Costco, as we prefer inventory turnover to be high provided inventory is not out of stock and the company is not losing customers. Days' sales in inventory of 32.1 days means that Costco is carrying 32.1 days of sales in inventory. This inventory buffer seems sufficient. As long as Costco is not at risk of running out of stock, it prefers its assets not be tied up in inventory. Please respond to the forum by Sunday, October 31st before 11:30 p.m. Please include the following information in your post: Calculate the inventory turnover and days' sales in inventory for both company's Analyze the ratios for each company 11.8 times Topic options using nvidia Category: General Module 3 forum vs Intel Decision analysis: Inventory turnover and days' sales in inventory Inventory turnover Inventory turnover, also called merchandise inventory turnover, tells how many times a company turns over (sells) its inventory in a period. It is used to assess whether management is doing a good job controlling the amount of inventory. A low ratio means the company may have more inventory than it needs. A very high ratio means inventory might be too low. This can cause lost sales if customers much back-order merchandise. Inventory turnover has no simple rule except to say a high ratio is preferable if inventory is adequate to meet demand. Inventory turnover = cost of goods sold/average inventory Days' Sales in Inventory Day's sales in inventory is a ratio that shows how much inventory is available in terms of the number of days' sales. It can be interpreted as the number of days one can sell from existing inventory if no new items are purchased. This ratio reveals the buffer against out-of-stock inventory and is useful in evaluating how quickly inventory is being sold. Days' sales in inventory = (Ending inventory/cost of goods sold) x 365 x Merchandisers must plan and control inventory purchases and sales. Costco's inventory at the end of 2017 was 59,834 million. This inventory was 57%of its current assets and 27% of its total assets. Company $ millions Current Year 1 Year Ago 2 Years Ago Costco Cost of goods sold $132.886 $123,152 $111,882 Ending inventory $11,395 $11,040 $9,834 Inventory turnover 11.8 times 11.9 times Days' sales in inventory 31.3 days 32.7 days 32.1 days Walmart Inventory turnover 8.8 times 8.6 times 8.3 times Days' sales in inventory 41.9 days 42.8 days 43.5 days Costco's 2017 inventory turnover of 11.9 times means that it turns over its inventory 11.9 times per year. Costco's inventory turnover exceeded Walmart's turnover in each of the 3 years. This is a positive for Costco, as we prefer inventory turnover to be high provided inventory is not out of stock and the company is not losing customers. Days' sales in inventory of 32.1 days means that Costco is carrying 32.1 days of sales in inventory. This inventory buffer seems sufficient. As long as Costco is not at risk of running out of stock, it prefers its assets not be tied up in inventory. Please respond to the forum by Sunday, October 31st before 11:30 p.m. Please include the following information in your post: Calculate the inventory turnover and days' sales in inventory for both company's Analyze the ratios for each company 11.8 times Topic options