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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