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 IBISWorld, and analyze the results. Discuss what each of these ratios tells you about the company’s 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. If you are an investor, explain whether or not you are satisfied with the company’s inventory management.

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...

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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 IBISWorld, and analyze the results.

Discuss what each of these ratios tells you about the company’s 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.

If you are an investor, explain whether or not you are satisfied with the company’s inventory management.

Answered Same DayJul 06, 2021

Answer To: Address the following: Calculate the inventory turnover ratio and number of days’ sales in inventory...

Rithik answered on Jul 07 2021

168 Votes

Running Head: CORPORATE FINANCE                             1
CORPORATE FINANCE        4
CORPORATE FINANCE
Table of Contents
Q1.    3
Q2    4
Q3.    4
Q4.    5
References    6
Q1.
Inventory turnover ratio for 2018
Inventory turnover ratio = COGS / average inventory
Average inventory =        Beginning + Ending
2
= 71433/2
= 35716.5
ITR = COGS /Avg Inventory
= 99513 / 35716.5
= 2.78
Inventory turnover ratio for 2019
Inventory turnover ratio = COGS / average inventory
Average inventory = Beginning + Ending
2
= 75,544 / 2
= 37,772
ITR = COGS /Avg Inventory
= 110302 / 37772
= 2.92
Number of days sales:
For 2018, the stock in trade that was amount SEK 37,721 that an increase of 12 percent in SEK as compared to last year the increase in 10 percent in local currencies.
For 2019 the stock in trade that was amount SEK 37,823 that an marginal increase in SEK as compared to last year. The stock in trade is adjusted in currency and decrease by 6...

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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...

Answer To: Address the following: Calculate the inventory turnover ratio and number of days’ sales in inventory...

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