Walgreens is a leading chain of drugstores in the United States. Use the following data for Walgreens
Question:
Walgreens (data in millions) Sales Revenues Cost of Goods Sold Ending Inventory Year 7 $53,762 6,791 Year 8 $38,518$59.034 $42,391 $ 7,249
Step by Step Answer:
104 The data and computations follow Walgreens Data in Millions Year 7 ...View the full answer
Financial reporting, financial statement analysis and valuation a strategic perspective
ISBN: 978-0324789416
7th Edition
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
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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