Question: Industry Analysis and Benchmark (peer) Analysis by comparing your company, A company with B company and Industry. 5. Company A Company B Industry Inventory Turnover

Industry Analysis and Benchmark (peer) Analysis by comparing your company, A company with B company and Industry.

5.

Company A

Company B

Industry

Inventory Turnover

3.42x

4.69x

5.50x

Bench (Peer) Analysis: Inventory Turnover of company A is less than that of Company B.

Industry Analysis: Inventory Turnover of company A is much less than the Industry average.

Inventory Turnover of company A is less than Company B and also Industry average. So, Company A must improve in order to reach the Industry average.

6.

Company A

Company B

Industry

DSO

46.44

38.24

32.00

Bench (Peer) Analysis: DSO of Company A is greater than that of Company B.

Industry Analysis: DSO of company A is greater than the Industry average.

DSO of Company A is high indicating that the company B is better but it is much greater than the Industry average. So, Company A need to decrease its DSO atleast to the Industry average.

7.

Company A

Company B

Industry

FATO

8.45x

6.42x

7.00x

Bench (Peer) Analysis: FATO of Company A is much greater than that of Company B.

Industry Analysis: FATO of company A is greater than the Industry average.

FATO of Company A is better than company B but still greater than the Industry average.

8.

Company A

Company B

Industry

TATO

1.97x

2.10x

2.600x

Bench (Peer) Analysis: TATO of Company A is less than that of Company B.

Industry Analysis: TATO of company A is less than the Industry average.

TATO of Company A is less than company B but still less than the Industry average. Company A should improve its TATO to reach the Industry average.

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