$16-41.$ Analyzing Inventory for Two Retail Grocery Companies

L$03$

Carrefour Group $($headquartered in Boulogne$-$Billancourt, France$)$ and Tesco PLC $($headquartered Carrefour Group in Welwyn Garden City, UK$)$ compete head$-$to$-$head in the grocery space in the UK$,$ Ireland, Central Europe, and North Africa. The following information comes from their $2018$ annual reports.

$\backslash$table$[[,\backslash$table$[[$Carrefour Group in$],[$ millions$]],\backslash$table$[[$Tesco PLC in$],[$ millions$]]],[,2018,2017,2018,2017],[$Sales$.,76,000,78,315,57,491,55,917],[$Cost of sales.,$60,850,62,311,54,141,53,015],[$Gross profit. $.,15,150,16,004,3,350,2,902],[$Inventory$.,6,135,6,690,2,263,2,301],[$Total assets $.,47,378,47,813,44,862,45,853]]$

Required

$a.$ Calculate gross profit margin for each year for both companies.

$b.$ Determine the common$-$size inventory for each year for both companies.

c$.$ Compute inventory turnover and days average inventory outstanding for $2018.$

$d.$ Based on the metrics in parts $a,b,$ and $c,$ how do we assess the two companies' inventory management?