Question
select a company for this analysis. Choose a company that a fellow student has not already posted. Address the following: Calculate the inventory turnover ratio
select a company for this analysis. Choose a company that a fellow student has not already posted.
Address the following:
Calculate the inventory turnover ratio and number of days sales in inventory for the company for the latest two years. Obtain the industry averages for these ratios and any other pertinent information from the Mergent OnlineLinks to an external site. database, available through the UAGC Library, or use another outside resource of your choice, and then analyze the results. Be sure to show your calculations.
If needed, review the How to Find Industry Ratios and Averages Using Mergent OnlineLinks to an external site. tutorial on how to use the Mergent OnlineLinks to an external site. database.
Discuss what each of these ratios tells you about the companys efficiency in managing its inventory and how they compare to the industry average.
Identify the major causes of any changes in these ratios and discuss your assessment of the company based on these changes.
As an investor, explain whether or not you are satisfied with the companys inventory management.
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