Analyzing and Interpreting the Inventory Turnover Ratio Dell Inc
Analyzing and Interpreting the Inventory Turnover Ratio
Dell Inc. is the leading manufacturer of personal computers. In a recent year, it reported the following in dollars in millions:
Net sales revenue $61,101
Cost of sales 50,144
Beginning inventory 1,180
Ending inventory 867
1. Determine the inventory turnover ratio and average days to sell inventory for the current year.
2. Explain the meaning of each number.