A company reports that its average inventory last year was $17,500,000 and its cost of goods sold
Question:
Step by Step Answer:
Inventory turnover 1...View the full answer
Managing Supply Chain and Operations An Integrative Approach
ISBN: 978-0132832403
1st edition
Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb
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 Management Leadership questions
-
A company reports that its sales have grown 3% per quarter for the last eight fiscal quarters. What annual growth rate has the company been experiencing for the last two years?
-
According to its financial reports, a company shows average inventory last year of $23,500,000 with cost of goods sold equal to $109,100,000. How fast did the company turn its inventory last year?
-
Prior to last year, Leastan Company had not kept departmental income statements. To achieve better management control, the company decided to install department-by-department accounts. At the end of...
-
Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live....
-
The box plots here show claimed expenses on the expense vouchers submitted by 30 members of the marketing department and 40 members of the accounting department last week. Describe the differences...
-
The accounting information system of Textbook Co. reported the following cost and inventory data for the year. Required A. Calculate the cost of goods manufactured. B. Calculate the cost of goods...
-
Consider a Poisson regression. Let \(e_{i}=y_{i}-\widehat{\mu}_{i}\) denote the \(i\) th ordinary residual. Assume that an intercept is used in the model so that one of the explanatory variables...
-
The shareholders' equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2010: Required: 1. During 2011, TNL Systems reacquired shares of its common...
-
Ames Trading Company has the following products in its ending inventory. Cost per Market per Product Quantity Mountain bikes Skateboards Gliders 14 12 30 Unit $ 710 240 910 Unit $ 640 280 870 Compute...
-
Exotic Electronics Canada (EEC), headquartered in Toronto, has been in business in the communication industry since 2010 producing and supplying electronic software in North America and Europe as...
-
What is meant by consignment inventory? Under what circumstances does consignment inventory work well?
-
Compute the EOQ when the cost per order (S) is $180, the annual demand (D) is 5000, the carrying charge (i) is 20%, and the cost of the item is $25.
-
Assuming a reasonable pattern of cross-section variation, find the capture cross-section of a nuclide at \(0.1 \mathrm{eV}\), if it is 20 barns at \(0.01 \mathrm{eV}\).
-
Use the diagram below for a perfectly competitive firm. If the market price is $8 what is the profit maximizing output? (Enter a numeric value e.g 35) 00 Price or cost (dollars per unit 9 24 MC AC...
-
An equation for Aggregate Expenditure is: AE= $3600+ 0.8Y, In equilibrium, Income 'Y' = Aggregate Expenditure 'AE'. Solve for Y. Y = $
-
Compare three alternatives on the basis of their capitalized costs at /= 9% per year and select the best alternative. Alternative First Cost AOC, per Year E $-65,000 $-55.000 $16,000 F $-380,000...
-
What are the differences between the family in Malawi and the family in Cambodia ?
-
Memo Assignment Suppose you are the marketing manager for a specialty retailer that sells customized handbags. Using the information below to presuade my boss though a memo about CRM.Your memo must...
-
Exercises 1730 contain linear equations with constants in denominators. Solve each equation. X 5 I 1 X || 18 2 6
-
Using (1) or (2), find L(f) if f(t) if equals: t cos 4t
-
The Willow River Mining Company mines and ships coal. It has experienced the following demand for coal during the past eight years: Year Coat Sales (tons) 1 ...........4260 2 ...........4510 3...
-
The Great Northwest Outdoor Company is a catalogue sales operation that specializes in outdoor recreational clothing. Demand for its items is very seasonal, peaking during the holiday season and...
-
The Great Northwest Outdoor Company is a catalogue sales operation that specializes in outdoor recreational clothing. Demand for its items is very seasonal, peaking during the holiday season and...
-
The blue samurai, a japanese restraurant, has an asset turnover of 3.5 the total assets were 95,000 what are net sales for the blue samurai?
-
Gatekeeper Manufacturing reported 50,000 physical units that were 100% complete for direct materials during the period. In addition, the 50,000 physical units were 100% for conversion costs. In terms...
-
What red flag was overlooked on the Montague Fellowship Expense Report?
Study smarter with the SolutionInn App