Question: Syarikat Pengedar National Corporation (M) Sdn. Bhd is a retail company that sells electronic products. The company has been experiencing a decline in its profitability

Syarikat Pengedar National Corporation (M) Sdn. Bhd is a retail company that sells electronic products. The company has been experiencing a decline in its profitability and wants to analyze its inventory management practices. As an analyst, you are tasked with calculating and interpreting the inventory turnover ratio to provide insights and recommendations for improvement. The following information is available for Syarikat Pengedar National Corporation (M) Sdn. Bhd.
a Cost of Goods Sold(COGS) for the year: RM2,500,000. o Average Inventory value: RM500,000
Calculate the inventory turn over ratio and provide an interpretation of the result.
2.Based on the interpretation, suggest possible actions the company can take to improve its inventory management.

Step by Step Solution

★★★★★

3.55 Rating (145 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Inventory Turnover Ratio Cost of Goods Sold COGS Average Inventory Value Inventory Turnover Ratio RM... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

You need to complete a project Case study in three schools in Abu Dhabi city and my Research question on my case study is how does emirate culture impact on face to face and written (medium)...

Use matlab Monte-Carlo Simulations: Two teams, A and B, are playing a game. Team A has a 50% chance of winning any given game (+1 point) 20% chance of a tie (+1/2 point), and . 30% chance of a loss...

What are the factors that you need to consider when determining how large a monthly mortgage payment you can afford?

(1) Income Statement Referencing this week?s readings and lecture, address the following: ? What are the two causes of an increasing or decreasing sales number? ? Discuss all the reasons that might...

Question 3 (a) Compute the 2014 inventory turnover ratio and the days in inventory ratio. Note: what Groupon calls finished goods inventory is really merchandise inventory. Further, these...

Case 6 YB Using the information from Exhibits C6.1 and C6.2 develop a pro forma income statement for 2016 . Assume that depreciation equals the 2015 amount plus one-sixth of 2016 capital spending....

On the ratios sheet only nowhere else. I need help finding Earnings per Share of Common Stock, Net income, and cost of goods sold. I did everything else. The pages are listed by the tab for quick...

I am having troubles doing this comparison of two companies. Im over thinking the work and need to get it simplified. I did most of the work just need you to check it over. Go to the Course Resources...

Chapter 10 Business Process and Information Systems Development \"Jeff, we clean the clubhouse restrooms twice a day . . . in the morning before 7 and again just before lunch. We've been doing that...

Hi, I was wondering if you can help me with some financial accounting work? I need help in computing the numbers for Forecast Values for 2024 for Humana using the information below. I have a sample...

Martin Jackson receives an hourly wage rate of $14, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 47;...

One scientist is measuring a physical quantity on a strange unit. For example, the time taken by the light to travel from a star to the earth was measured in units "BRT". If this unit has to make...

What is the variance and standard deviation of of 46.38, 46.18, 46.57, 46.72, 46.86, 46.58, 46.61, 46.64, 46.03, 45.93, 45.51, 45.53

Money Inc., a USA-based business has an acid test ratio of 3 times, and the value of the current assets including closing inventories (comprising of trade receivables of $2,000,000 and cash of...

we look at how companies use CRM, SCM, and ERP to gain a competitive advantage and run more efficiently. Find an industry/business or company currently using one of those technologies (CRM, SCM,...

1. What are the practices that Xerox used in its TQM implementation? Discuss. 2. What are some barriers that you think Xerox has faced during TQM implementation? Relate them. 3. Does TQM...

Both asphalt and wax are produced by _ _ _ _ _ _ _ _ _ base crude oils. Naphthenic Asphalt Paraffin Mixed

Which of the companies has the lowest accounts receivable turnover in the year 20X2? a. Company A. b. Company B. c. Company C. d. CompanyD. 20X1 20X2 Credit Sales Average Receivables Balance $1.0...

What product would you expect from the reaction of butyrolactone with LiAlH4 with DIBAH? Butyrolactone

Show how you could use the acetamidomalonate method to prepare the following amino acids: (a) Leucine (b) Tryptophan

Using curved arrows, propose a mechanism for the following reaction, one of the steps in the biosynthesis of the amino acidtyrosine. CO2 CO2 -CO2

9.3. Anthropologists often try to reconstruct information using partial human remains at burialsites. For instance, after finding a femur (thighbone), they may want to predict how tall an individual...

In Example 10.11, subtract from each observation in the ith sample to obtain a set of 18 residuals. Then construct a normal probability plot and comment on the plausibility of the normality...

9.13. A report summarizing the results of a study on the relationship between a verbal aptitude test x and a mathematics aptitude test y states that x - 480. y - 500,% - 80, Sy - 120, and r - 0.60....