Question
Industry Analysis and Benchmark (peer) Analysis by comparing your company, A company with B company and Industry. 5. Company A Company B Industry Inventory Turnover
Industry Analysis and Benchmark (peer) Analysis by comparing your company, A company with B company and Industry.
5.
Company A | Company B | Industry | |
Inventory Turnover | 3.42x | 4.69x | 5.50x |
Bench (Peer) Analysis: Inventory Turnover of company A is less than that of Company B.
Industry Analysis: Inventory Turnover of company A is much less than the Industry average.
Inventory Turnover of company A is less than Company B and also Industry average. So, Company A must improve in order to reach the Industry average.
6.
Company A | Company B | Industry | |
DSO | 46.44 | 38.24 | 32.00 |
Bench (Peer) Analysis: DSO of Company A is greater than that of Company B.
Industry Analysis: DSO of company A is greater than the Industry average.
DSO of Company A is high indicating that the company B is better but it is much greater than the Industry average. So, Company A need to decrease its DSO atleast to the Industry average.
7.
Company A | Company B | Industry | |
FATO | 8.45x | 6.42x | 7.00x |
Bench (Peer) Analysis: FATO of Company A is much greater than that of Company B.
Industry Analysis: FATO of company A is greater than the Industry average.
FATO of Company A is better than company B but still greater than the Industry average.
8.
Company A | Company B | Industry | |
TATO | 1.97x | 2.10x | 2.600x |
Bench (Peer) Analysis: TATO of Company A is less than that of Company B.
Industry Analysis: TATO of company A is less than the Industry average.
TATO of Company A is less than company B but still less than the Industry average. Company A should improve its TATO to reach the Industry average.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started