If a firms cost of goods sold is $5 million and its inventory turnover is 10 times,
Question:
If a firm’s cost of goods sold is $5 million and its inventory turnover is 10 times, what is the average inventory?
Step by Step Answer:
Average ...View the full answer
Principles of Supply Chain Management A Balanced Approach
ISBN: 978-1337406499
5th edition
Authors: Joel D. Wisner, Keah Choon Tan, G. Keong Leong
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Business questions
-
Sora Industries has 60 million outstanding shares, $120 million in debt, $40 million in cash, and the following projected free cash flow for the next four years (see MyFinanceLab for the data in...
-
The 2016 income statement and other information for Mallard Corporation, which is about to purchase a new machine at a cost of $500 and a new computer system at a cost of $300, follows....
-
California Retailing Inc. has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000. What is California Retailing's EBIT? A) $850,000 B)...
-
Jake Drewrey has total fixed monthly expenses of $ 1,340 and his gross monthly income is $3,875. What is his debt-to-income ratio? How does his ratio compare to the desired ratio?
-
What do we mean by monopolistic competition? Why do we use this model to examine intraindustry trade?
-
1. What are the three most important trends cited in this case? Explain your answer. 2. To date, what are the three most accurate predictions cited in the case? Explain your answer. 3. To date, what...
-
The gas mixture in a helium-neon laser (end mirrors removed) emits light at \(633 \mathrm{~nm}\) with a Doppler-broadened spectral width of about \(1.5 \times 10^{9} \mathrm{~Hz}\). Calculate the...
-
Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. The new customer is...
-
I think value pricing should be used since we are increasing product and service benefits while maintaining a reasonable price. Some products, price influences consumers perception of overall quality...
-
Modify MEMOIZED-CUT-ROD to return not only the value but the actual solution, too. The Fibonacci numbers are defined by recurrence (3.22). Give an 0(n)-time dynamic-programming algorithm to compute...
-
If a firms cost of goods sold is $2.5 million and its average inventory is $500,000, what is the inventory turnover?
-
If a firms inventory turnover is 8 times and its average inventory is $160,000, what is the cost of goods sold?
-
What are the differences between primary and secondary reference groups? What primary and secondary groups do you belong to?
-
Go to https://hubbardobrieneconomics.com/2022/09/30/a-handy-way-to-track-recession-indicators/ and read the post A Handy Way to Track Recession Indicators. Based on what you read in this post, how...
-
An article in the Wall Street Journal in late 2022 noted that FedEx Corp.s warning of a sharp drop in package deliveries set off fresh worries among investors about the outlook for the global...
-
Having understood the contents of this chapter, you, as the manager of Section A comprising 50 students of MBA 1st year course, are required to form groups of five students each. Include yourself in...
-
Given the following information for a retailer, compute the cost of goods sold. Ending inventory. Website maintenance..... Revenues...... Freight-in............ Import duties........ Marketing...
-
In 2015, Noble Corporation earned an operating profit margin of 15 percent and realized a total asset turnover ratio of 2. a. What was Nobles operating return on assets in 2015? b. In 2015, if the...
-
True or False Perpendicular lines have slopes that are reciprocals of one another.
-
(a) What is the focal length of a magnifying glass that gives an angular magnification of 8.0 when the image is at infinity? (b) How far must the object be from the lens?
-
Why do you think the Baldrige Award is available only to U.S. companies?
-
What is the DMAIC improvement cycle, and how could you use it to improve your college study habits?
-
Why was Toyota's first U.S. car such a failure? What did they learn from this experience?
-
You anticipate the receipt of money in 200 days, which you will use to purchase stocks in a particular company. The stock is currently selling for $51 and will pay a $0.5 dividend in 50 days and...
-
1) Based on the stock chart for Michaels Companies Inc, what do you think the short and long-term growth potentials are for this company? (discuss the advantages/disadvantages) Link to the stock...
-
After being drafted in the first round of the NFL draft, a star defensive end invests his signing bonus of $9,827,000.00 in a mutual fund. The fund pays on average 7.00% APR. The player will not...
Study smarter with the SolutionInn App