The TBI Company has a number of days of inventory of 50. Therefore, the TBI Companys inventory
Question:
The TBI Company has a number of days of inventory of 50. Therefore, the TBI Company’s inventory turnover is closest to
a. 4.8 times.
b. 7.3 times.
c. 8.4 times.
d. 9.6 times
Step by Step Answer:
b is correct We perform the calculations using the following relat...View the full answer
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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 Corporate Finance questions
-
The Hi-Stakes Company has a number of importing and exporting transactions. Importing activities result in payables and exporting activities result in receivables. (LCU represents the local currency...
-
Company A has a number of jobs that are processed through similar manufacturing processes. However, most jobs have labor-hour requirements ranging from 100 to 130 hours, while these jobs differ...
-
You own a lemonade stand in a competitive lemonade market and, as such, you are a price-taking firm. Which of the following events would most likely increase your market power? Select one: a. The...
-
Assume that on January 1, 2016 an investor company paid $11,600 to an investee company in exchange for the following assets and liabilities transferred from the investee company: Investee's Estimated...
-
Find a company Web site that emphasizes community building, and examine the usage of social networking technologies supported by the site. What do you see as some of the pros and cons for supporting...
-
The database German Credit.xlsx** contains information on the credit risk of 1,000 customers. The data include demographic information (e.g., gender) and financial information (e.g., savings account...
-
The salaries (in thousand dollars) of a sample of 10 employees Organize the data using the indicated type of graph. Describe any patterns. 225 410 368 310 228 298 361 159 486 296
-
Baldwin Company produces treadmills. One of its plants produces two versions: a standard model and a deluxe model. The deluxe model has a wider and sturdier base and a variety of electronic gadgets...
-
A rigid container contains an ideal gas 40C which is stirred by a blade. The blade produces 200kJ of work. The temperature remains constant thanks to a heat exchange with the surroundings which are...
-
Examine the Patient Medication Form for the Well meadows Hospital case study shown in Figure 14.18. (a) Identify the functional dependencies represented by the data shown in the form in Figure 14.18....
-
Common-size analysis is used in financial analysis to a. Evaluate changes in a companys operating cycle over time. b. Predict changes in a companys capital structure using regression analysis. c....
-
DuPont analysis involves breaking return-on-assets ratios into their a. Profit components. b. Marginal and average components. c. Operating and financing components. d. Profit margin and turnover...
-
Ming Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April. (For specific identification, units sold consist of 20 units from beginning...
-
On June 10, 20X6, Dar Al Fatina purchased material supplies on account for $35,000. Which of the journal entries for this transaction in the table below is correct. A Date June 10, 20X6 Cash Accounts...
-
__________theory assumes that language acquisition is based on principles of conditioning and shaping.
-
Developmental psychologists are interested in the effects of both __________and __________on development.
-
Winning the lottery is likely to a. Produce an immediate and long-term increase in the level of well-being. b. Produce an immediate but not lingering increase in the level of well-being. c. Produce a...
-
Which of the following statements is true? A. An object storage bucket can only exist in one compartment. B. An object storage bucket can exist in multiple compartments. C. An object storage bucket...
-
Use a bar graph to plot the frequency distribution. Use the goaltenders salaries for the 1991 NHL season given in the following table to answer question. Name Patrick Roy Ed Belfour Ron Hextall Mike...
-
A business had revenues of $280,000 and operating expenses of $315,000. Did the business (a) Incur a net loss (b) Realize net income?
-
Develop a budget for the project getting an undergraduate degree. Explain your assumptions and your analysis.
-
Spurlock Inc. had net income of $266,778 in its most recent fiscal year and total assets of $1,833,400 at the end of the year. The company's total debt ratio (total debt to total assets) is 35...
-
Using the information in Sample Test Problem 19.3, what is Spurlock's capital intensity ratio if the company has net sales of $3,557,100? What does this ratio tell us?
-
Edgefield Excavation Company has total ssets of $4,976,456, sales of $1,225,700, nd net income of $587,000. The company's management expects sales to grow by 9 percent next year. ll costs (including...
-
This year, Company ABC purchases Class 8 (20%) Assets for $20,000, what is the maximum CCA for this year?
-
How is this information calculated from the available data? PV of Planning Period PV of Terminal Value Implied Ent Value Debt Implied Equity Value # of Shares Implied Share Price in EUR Implied Share...
-
A. On November 6, 2020 (Friday), you sold $120,000 of the following Treasury note: Maturity Coupon Bid 8/31/202 0.250 99.1660 5 Asked 99.1720 Compute the accrued interest and invoice (dirty or full)...
Study smarter with the SolutionInn App