This week we will have covered Chapter 7 - Inventory. In Chapter 7, we learned about the measure for inventory turnover (Cost of Goods Sold/Average Inventory). Inventory turnover measures how often inventory is sold, or the company's sales volume normalized by the company's normal inventory levels.There is another, equally important measure when evaluating a company's sales. It is called gross profit margin, calculated as (Sales Price - Cost of Goods Sold)/Cost of Goods Sold. It measures the mark-up that a company has on its inventory, expressed as a percentage. If a company buys inventory for $1 and sells it for $1.20, then its gross profit margin is 20% ([$1.20 - $1]/$1 = 0.20 or 20%). It marks-up its inventory by 20%.

When comparing the following retailers: Target, Amazon, Walmart, and Costco, who do you think has the highest/lowest Inventory Turnover and who do you think has the highest/lowest Gross Profit Margin?

Please rank Target, Amazon, Walmart, and Costco from 1 to 4 (1 being the highest) in inventory turnover and gross profit margin with a brief explanation (1-2+ sentences) of why they think so. As an example of your rankings:

Inventory Turnover (Example)

1. Costco
2. Target
3. Walmart
4. Amazon

Gross Profit Margin (Example)

1. Target
2. Amazon
3. Walmart
4. Costco