Measuring turnover and cash conversion cycle: Evaluate the ability to sell inventory, collect

receivables, and manage payments. Which company appears to be the most efficient with

managing its cash conversion cycle? Company 1 or Company 2

Help Community F37 X 115675 A A B PINK means that the information should be used in your paper E G H Ln YELLOW means that the information might be used in your paper (Only enter information in green, pink or yellow cells) Company name Company 1 Most recent year end date Company 1 Company 2 10 1 year prior year end date Year 2017 Company 2 Year 2016 Year 2017 11 2 years prior year end date Year 2015 Year 2016 12 Are dollars in thousands, millions or billions? Year 2015 13 Millons Thousands 14 Balances from balance sheet: 15 Cash and cash equivalents Year 2017 Year 2016 Year 2015 Year 2017 16 Receivables, net 419 0 Year 2016 Year 2015 451 728 805 531 65,637 91,035 94,193 17 Allowance for doubtful accounts 17,70 526 33, 749 36,694 18 Marketable securities 11.30 38,984 9.50 19 Inventory 20 Other current assets, if any 592 593 179 50,651 52,499 21 Total current assets 682 56,462 2, 188 2,170 383 22 PP&E 10,695 8,731 23 Total assets AHAH B 4 674 7 4,507 168,348 193,887 24 F 30,247 29,342 2 1 384,280 408,4 13,980 569,624 615,946 25 Accounts payable 645,400 26 Total current liabilities 2,680 2,468 27 Total liabilities 3,399 38, 141 40,585 3,158 16,812 101, 758 17,720 101,519 28 Stockholders' equity 13,226 11,419 7,043 146, 101 169,364 29 Common stock outstanding 2.0 423,523 446,582 2.0 461,221 30 Common stock authorized 500 12,035 12,533.0 31 32 33 Totals from income statement: 34 Revenues/Sales Year 2017 Year 2016 Year 2015 13,472 Year 2017 6,597 Year 2016 Year 2015 35 Cost of goods sold 5,127 6,21 921,736 968,994 36 Interest expense 272 2,132 1,024,040 349 413,091 37 Operating income before interest and taxes (EBIT) 272 446, 776 458,317 38 Net income 1,382 3,057 1,993 115,675 39 Earnings per share 1,414 137,659 40 215.40 99,049 212.00 87,349 8.18 6.93 41 Data Sheet Ratios +