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

Required:

1. Determine the Inventory Turnover Ratio and average days to sell inventory for the current year.

2. Explain the meaning of each number.