The financial statements of AB InBev's (BEL) 2015 annual report disclosed the following information. Instructions Compute AB
Question:
The financial statements of AB InBev's (BEL) 2015 annual report disclosed the following information.
Instructions
Compute AB InBev's (a) inventory turnover and (b) average days to sell inventory for 2015.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
31 December 2015 31 December 2014 (in millions) $2,862 $2,974 Inventories Fiscal Year 2015 2014 $43,604 $47,063 Sales Cost of sales 17,137 18,756 Net income 9,867 11,302
Step by Step Answer:
a Inventory turnov...View the full answer
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
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