Polaris Industries Inc is the biggest snowmobile manufacturer in the world It reported the following amounts in its financial statements (in millions) Required 1 Calculate to one decimal place the inventory turnover ratio and average days to sell inventory for 2015, 2014, and 2013 2 Comment on any ...

1 2015 2014 2013 Inventory Turnover Ratio Cost of Goods Sold 53 ...

Polaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the following amounts in

Question:

Polaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions):

2015 2012 2013 2014 $4,480 $3,200 $3,780 $4,720 Net Sales Revenue Cost of Goods Sold Average Inventory 2,280 2,660 3,160

Required:

1. Calculate to one decimal place the inventory turnover ratio and average days to sell inventory for 2015, 2014, and 2013.

2. Comment on any trends, and compare the effectiveness of inventory managers at Polaris to inventory managers at its main competitor, Arctic Cat, where inventory turned over 3.7 times in 2015 (98.6 days to sell). Both companies use the same inventory costing method (FIFO).

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Financial Statements
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...

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