Interpreting Financial Results - Essay Example

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Summary

According to Bruce (2009), ITT Co.s receivables turnover improved from 2011 to 2012.The net accounts receivable slightly deteriorated between the year 2012 and 2013.
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Subject: Finance & Accounting
Type: Essay
Level: Undergraduate
Pages: 3 (750 words)
Downloads: 3
Author: williamsonfatim

Extract of sample "Interpreting Financial Results"

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l turnover reduced in the year 2011 and 2012 .The working capital ratio also reduced in the year 2013.This ratio indicates the extent to which, the working capital has been utilized in the creation of sales revenue. This is computed by dividing the total number of the days by the inventory turnover. ITT Co.s average inventory processing period increased in the year 2011 and 2012.However, the ratio slightly reduced in the year 2013. This is the sum of the inventory-processing period plus the average revenue collection period.

Boeing Co.s operating cycle improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013. Average Payables Payment Period is the period the company takes to pay its creditors. The payment period is computed by dividing the total number of payables by payable turnover ratio. ITT Co.s average payables payment period reduced in the year 2011 and 2012 (Bruce, 2009).Additionally, the ratio also reduced in the year

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