The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover
Question:
Step by Step Answer:
1 2 3 4 5 Current ass...View the full answer
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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.
Students also viewed these Corporate Finance questions
-
W. F. Bailey Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover of five times, total current assets of $810,000, and cash and equivalents of $120,000 in 2015. If the cost...
-
W. F. Bailey Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover of five times, total current assets of $810,000, and cash and equivalents of $120,000 in 2012. If the cost...
-
A Zebra engineering corp. has a quick ratio of 2.00x, $28,125 in cash, $15,625 in accounts receivable, some inventory, total current assets of $62,500 and total current liabilities of $21,875. The...
-
Consider a low-pass signal with a bandwidth of 3 kHz. A linear delta modulation system, with step size = 0.1V, is used to process this signal at a sampling rate ten times the Nyquist rate. (a)...
-
Myriad Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320 million on January 1, 2018, for $283,294,720. The bonds mature on December 31, 2027 (10 years). For bonds of...
-
How does the forum meet organisational objectives? What vocabulary, tone, structure and style suits the audience? How will I: build trust develop positive working relationships ...
-
The cumulative normal distribution can be approximated (to within about six decimal places) by the modified polynomial relation where Use this formula to find the value of a call option with...
-
A lease involves payments of $10,000 per year for six years. The payments are made at the end of each year. The lease involves a bargain purchase option of $6,000 to be exercised at the end of the...
-
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments-Molding and Fabrication. It started, completed, and sold...
-
Satka Fishing Expeditions, Inc., recorded the following transactions in July: 1. Provided an ocean fishing expedition for a credit customer; payment is due August 10. 2. Paid Marine Service Center...
-
Complete the balance sheet and sales information in the table that follows for Hoffmeister Industries using the following financial data: Debt ratio: 50% Quick ratio: 0.80 Total assets turnover: 1.5...
-
Data for Morton Chip Company and its industry averages follow. a. Calculate the indicated ratios for Morton. b. Construct the extended Du Pont equation for both Morton and the industry. c. Outline...
-
a. State the domain and range of f 1 . b. Find an expression for f 1 (x). f : x x 2 + 4x for x , x > 2
-
Josh is graduating at the end of the academic year with a BS degree in engineering. He already has an offer with a good company for $58,000. He has learned that those who continue along a technical...
-
Your money is tied up and you need to borrow \($10\),000. The following two alternatives are available at different banks: (1) Pay \($3\),311.61 at the end of each year for 5 years, starting at the...
-
Med Diagnostics Inc. borrowed \($200\),000 from a lender for a new blood analyzer module to improve accuracy and consistency of its tests. The rate was 6 percent, 2 percent above the prime rate. The...
-
Recall Problem 34. Shortly before Jerry got under way with his job and investment plan, he met Jennifer. All of a sudden, he decided to put the retirement plan on hold, reasoning that 40 years is a...
-
What is the effective annual interest rate for 5 percent compounded (a) semiannually, (b) every 4 months, (c) quarterly, (d) every other month, (e) monthly?
-
Suppose you are given the following sales information for Julian Corp. Estimate the growth rate of sales for Julian Crop. Use this information to forecast the companys sales for year 10. Year 0 12345...
-
Write electron configurations for the following ions, and determine which have noble-gas configurations: (a) Cd2+ (b) p3- (c) Zr4+ (d) Ru3+ (e) As3- (f) Ag+
-
Compound A, C 8 H 16 , undergoes catalytic hydrogenation to give octane. When treated with meta- chloroperoxybenzoic acid, A gives an epoxide B, which, when treated with aqueous acid, gives a...
-
A man is purchasing a small garden tractor. There will be no maintenance cost during the first 2 years because the tractor is sold with 2 years free maintenance. For the third year, the maintenance...
-
Mark Johnson saves a fixed percentage of his salary at the end of each year. This year he saved $1500. For the next 5 years, he expects his salary to increase at an 8% annual rate, and he plans to...
-
The Macintosh Company has an employee savings plan that allows every employee to invest up to 5% of his or her annual salary. The money is invested in company common stock with the company...
-
1. According to the website BomBoh.com - a website devoted to interesting and informative articles on animals - the world's longest walk is 22,387km! This walk is the longest stretch of land you can...
-
Fuller, Netter & Stegemoller (2002) identify episodes of buying "frenzies" whereby a single rm acquires at least five different companies in less than three years. For each of these "serial"...
-
1. Consider the following security. It pays $300 next year, and then $400 in every year forever after that (see timeline of payments below). Interest rates are 4% at all maturities. What is the fair...
Study smarter with the SolutionInn App