Question
Using the ratios and information given below for SportsOutlet.com, analyze the short-term liquidity and operating efficiency of the firm. 2015 2014 Current ratio 1.50 1.35
Using the ratios and information given below for SportsOutlet.com, analyze the short-term liquidity and operating efficiency of the firm.
2015 2014
Current ratio 1.50 1.35
Quick ratio 1.15 1.08
Cash flow liquidity ratio 1.39 1.32
Average collection period 10 days 7 days
Days inventory held 35 days 28 days
Days payable outstanding 86 days 79 days
Cash conversion cycle (41 days) (44 days)
Fixed asset turnover 27.36 times 22.14 times
Total asset turnover 1.93 times 2.21 times
Cash flow from operations (in millions) $523 $376
Net sales (in millions) $6,743 $5,187
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Understanding Financial Statements
Authors: Lyn Fraser, Aileen Ormiston
11th edition
133874036, 978-0133874037
