Using Exhibit 12-9 as a guide, compare C&C Sports performance to the industry averages. What particular observations
Question:
as a guide, compare C&C Sports performance to the industry averages. What particular observations and recommendations do you have for George Douglas, president of C&CSports?
2011 2010 2009 2008 2007 Select Common-Size Percentages: Cash & equivalents Trade receivables, net Inventory Property and equipment Short-term debt Trade payables Long-term debt Stockholders' equity 10.4% 25.2% 38.0% 11.9% 14.7% 16.3% 8.0% 42.1% 34.1% 28.4% 5.6% 4.8% 69% 22.4% 40.2% 13.7% 16.9% 15.9% 11.6% 42.7% 31.4% 26.9% 45% 8.0% 23.1% 41.2% 13.5% 17.5% 10.1% 39.7% 37.7% 31.4% 6.3% 5.7% 8.4% 22.0% 41.2% 13.3% 16.2% 15.2% 12.2% 33.2% 36.3% 32.0% 4.3% 3.8% 93% 24.6% 38.7% 13.6% 13.6% 17.6% 11.2% 39.2% 34.6% 28.9% 5.7% 4.9% Gross profit Operating expenses Operating income Income before taxes Select Ratios Current ratio Quick ratio (Acid test) Average 2011 2010 2009 2008 2007 collection 33.2 days 5.1 times 63% 75% 95% 35.6 days 5.4times 292% 31.8 days 7.0 times 36.6% 3.1% 40% 37.6 days 6.2 times 55.1% 0.4% 40.9 days 6.6 times 61.1% 7.3% 12.1% period Inventory turnover (based on sales) Debt-to-equity Return on assets Return on 12.3% Risk Management Association's 2012/2013 Annual Statement Studies: Financial Ratio Benchmarks, NCAIS 315299 Industry median ratio, from Dun & Bradstreet's Industry Norms & Key Business Ratios, 2007-2008, 2008-2009, 2009-2010, 2010-2011, and 2011-2012 editions, SIC 2329
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Overall CC Sports balance sheet is not as strong as the industry averages CCs relative level of cash ...View the full answer
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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.
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