Need some help with my Finace problems. Dont need to calculate where there is an "x" for that year.

I realized yesterday that I had not quite finished the Financial Ratios lecture, and therefore never ended up covering the Cash Conversion Cycle (CCC) and the Asset Turnover. * I would still like you to calculate and evaluate those figures for purposes of the homework, questions 5d and 5e.* Therefore, please review slides 32-38 of the Financial Ratios lecture.

Essentially, CCC tells us how long you have to wait until you get back the money (from the sale of an item) that you had to originally spend in order to produce the item in the first place. So the longer the CCC the longer your business is operating without money (a bad thing). The formula is CCC = DII + DSO - DPO. This is because DII tells us how long your inventory (that you had to pay to produce) sits around before it gets sold, then you still have to wait to get paid from your customers who purchased the item on credit (DSO), BUT that is offset somewhat by the fact that you yourself didn't have to pay your suppliers who had also let you pay on account/on credit (DPO). Especially for businesses in which your inventory may sit around for a while before it gets purchased (e.g. Automobiles), your CCC is going to be longer than one in which inventory is quickly purchased after it comes in (e.g. a gas station).

Asset Turnover tells us how many times (assuming your ratio is greater than 1) the value of your Assets has generated an equivalent amount of Revenue. For example if you have Revenues of $150,000 and *Average* assets (remember, [Assets last year + Assets this year] divided by 2) of $100,000, that means that you were able to "turn over" your assets 1.5 times, or in other words generate Revenue of 1.5 times the value of your Assets. (Remember, Assets are all items that you own that are meant to generate cash for you.)

Keep in mind that for each of the ratio questions in the homework, I want you to tell me both (1) what the absolute number signifies (if we know what constitutes a "good" or "bad" ratio, per the slides) AND (2) if the trend is positive or negative, and how severe a move it appears to be.

One of the students pointed out that I never specified "Credit Revenue" vs. the "Revenue" from our HW 5. Please consider the ENTIRE Revenue number as "Credit Revenue" for the purposes of our homework. While this is unrealistic in real life (only a portion of the sales will have been made via credit), for purposes of our homework I don't want to make it more complicated so please use the full Revenue amount as "Credit Revenue".

	GoPro Consolidated Balance Sheets					GoPro Consolidated Statements of Operations
		December 31,	December 31,	December 31,			December 31,	December 31,	December 31,
	(in thousands, except par values)	2015	2014	2013			2015	2014	2013
	Assets
	Current assets:					(in thousands, except per share data)	2015	2014	2013
	Cash and cash equivalents	$279,672	$319,929	$101,410		Revenue	$1,619,971	$1,394,205	$985,737
	Marketable securities	194,386	102,327	-		Cost of revenue	946,757	766,970	623,953
	Accounts receivable, net	145,692	183,992	122,669		Gross profit	673,214	627,235	361,784
	Inventory	188,232	153,026	111,994		Operating expenses:
	Prepaid expenses and other current assets	25,261	63,769	21,967		Research and development	241,694	151,852	73,737
	Total current assets	833,243	823,043	358,040		Sales and marketing	268,939	194,377	157,771
						General and administrative	107,833	93,971	31,573
	Property and equipment, net	70,050	41,556	32,111		Total operating expenses	618,466	440,200	263,081
	Intangible assets, net	31,027	2,937			Operating income	54,748	187,035	98,703
	Goodwill	57,095	14,095	17,365
	Other long-term assets	111,561	36,060	32,155		Interest Expense (hover over cell to see Comment)	2,163	6,060	7,374
	Total assets	$1,102,976	$917,691	$439,671		Income before income taxes	52,585	180,975	91,329
						Income tax expense	16,454	52,887	30,751
	Liabilities and Stockholders' Equity					Net income	$36,131	$128,088	$60,578
	Current liabilities:
	Accounts payable	$89,989	$126,240	$126,423		Depreciation and amortization	12,034	3,975	1,517
	Accrued liabilities	192,446	118,507	106,093
	Deferred revenue	12,742	14,022	7,781			Answer Grid
	Current portion of long-term debt			60,297			2015	2014	2013
	Total current liabilities	295,177	258,769	300,594		Profitability Ratios:
						Gross Profit Margins
	Long-term taxes payable	21,770	13,266	13,930		Operating Profit Margin
	Other long-term liabilities	13,996	4,452	53,315		Net Profit Margin
	Total liabilities	330,943	276,487	367,839		Markup Percentage
	Commitments, contingencies and guarantees (Note 10)			77,198		Return on Equity			x
						Return on Assets			x
	Stockholders' equity:
	Preferred Stock	-	-			Leverage Ratios:
	Common stock and Additional paid-in capital	663,311	533,000	14,518		Debt-to-equity Ratio:			x
	Treasury stock, at cost, 1,545 shares and none, respectively	-35,613	-			EBITDA (for purposes of next ratio)
	Retained earnings	144,335	108,204	-19,884		Interest Coverage Ratio:
	Total stockholders' equity	772,033	641,204	-5,366
						Liquidity Ratios:
	Total liabilities and stockholders' equity	$1,102,976	$917,691	$439,671		Current Ratio:
						Quick Ratio:
	HW 5: Ratios (pls scroll down to answer all questions)			-		Efficiency Ratios:
	1. Fill out the Answer Grid on the right (do not fill out grayed "x'd" out boxes and use formulas to reference appropriate cells)					Days in inventory (DII)			x
	Profitability Ratios:					Inventory Turnover			x
	2a. What does the Gross Profit Margin trend (2013-2015) tell you?					Days Sales Outstanding (DSO)
	2b. Do the Operating Profit Margin and Net Profit Margin tell you the same story? If not, what are the main causes of the difference?					Days Payable Outstanding (DPO)
	2c. Although sparse in data points, what does the Markup Percentage trend potentially tell you?					Cash Conversion Cycle (CCC)
	2d. What explains the return differentials for ROE and ROA year-over-year? (hint: look at history of GoPro stock outside of this exercise) Can we use this data?
	Leverage Ratios:					Asset Turnover			x
	3a. Explain the Debt-to-equity ratio (in the context of the lecture's "what is considered too high").
	3b. Explain the interest coverage ratio (in the context of the lecture's "what is considered sufficient").
	Liquidity Ratios:
	4a. Evaluate the recent trend in the Current Ratio.
	4b. Evaluate the recent trend in the Quick Ratio.
	Efficiency Ratios:
	5a. Explain what DII and Inventory Turnover are telling us.
	5b. Evaluate the past two years' trend in DSO.
	5c. Evaluate the past two years' trend in DPO.
	5d. Explain what the CCC tells us and evaluate its trend over the past two years.
	5e. Explain what Asset Turnover tells us over the past two years.