Question
The Coca-Cola Company is analyzing its cash conversion efficiency for the year. The following data is provided: Cash Conversion Cycle: 60 days Days
The Coca-Cola Company is analyzing its cash conversion efficiency for the year. The following
data is provided:
● Cash Conversion Cycle: 60 days
● Days Inventory Outstanding (DIO): 30 days
● Days Sales Outstanding (DSO): 45 days
● Days Payable Outstanding (DPO): 15 days
a) Calculate the Inventory Turnover Ratio. b) Determine the Receivables Turnover Ratio. c)
Compute the Payables Turnover Ratio. d) Analyze the Impact on Working Capital. e) Evaluate
Strategies to Improve Cash Conversion Efficiency.
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Financial Statement Analysis and Security Valuation
Authors: Stephen Penman
5th edition
78025311, 978-0078025310
