Question
Please help me with the second question. The first question is there for a reference I6. For 2019, perform an analysis of productivity based on
Please help me with the second question. The first question is there for a reference
I6. For 2019, perform an analysis of productivity based on the following working capital components: AR, Inventory and AP. Calculate their turnover, and the corresponding DSO, DIO, and DPO (we covered this in the first part of this project). Calculate the cash conversion cycle. Provide all the calculations. [3 points]
Provide all the calculations. [3 points]
Pg 69 & 71.
DSO = 365 / Net Sales * Average Accounts Receivable = 31.8 days
DIO = 365 / (Cost of Goods Sold / Average Inventories) = 141.6 days
DPO = 365 / (Cost of Goods Sold / Average accounts Payable) 100.8 days
CCC = DSO + DIO - DPO = 72.6 days
I7. Based on the calculations in the previous question, provide your comments regarding SBDs productivity. How good is SBD managing this productivity component of ROE? Is SBDs CCC appropriate with respect to its competitors? (it is fine if you only compare with Snap On)? What about with its industry?
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