BTN5-2 - Coursework Example

Comments (0) Cite this document
(Bragg, 25) sales can still be used in calculating inventory turnover, but the cost of goods sold is more robust than sales, because it gives the inventory cost value as opposed to sales which uses inventory…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.9% of users find it useful
Read TextPreview

Extract of sample "BTN5-2"

Inventory turnover Inventory turnover= cost of goods sold (sales average inventory. (Bragg,25) sales can still be used in calculating inventory turnover, but the cost of goods sold is more robust than sales, because it gives the inventory cost value as opposed to sales which uses inventory market value.
Apple; current year, 87,846/791= 111 times Previous year, 64,431/776= 83 times
Google; current year, 20,634/505= 41 times Previous year, 13,188/35= 377 times
2. Day’s sales in inventory
Day’s sales in inventory= 365/Inventory turnover or (end inventory/cost of goods)* 365
Apple; current year; 365/111= 3 days Prior year 1; 365/83= 4 days
Prior year 2: (1051/39,541) *365= 10 days
Google; current year; 365/41= 9 days Prior year 1; 365/= 1 day
Prior year 2; (0/10,427)*365= 0 days
3. Interpretation
The average turnover for the industry this company operates is 5 times. Therefore, a figure below the average is a poor inventory management practices of the firm. Both Apple and Google have had an exceptionally turnover for the last two years. This clearly shows that the firms have a stout strategy in managing their inventory. Analyzing the progress of the two firms as far as inventory turnover is concerned, it can be concluded that Apple improved its inventory turnover by 33.7% {(111-83)/83} *100. On the other hand, Google inventory turnover reduced drastically by 89% {(377-41)/377}*100. The analysis shows that in the current year Apple had efficient control measures on inventory as compared to Google.
According to (Messmore, 52), inventory turnover and day’s sales inventory are interlinked and inverse proportion to each other. He further elaborate that, an increase in inventory turnover reduces day’s sales in inventory. This can be evidenced in the changes that occurred in the two inventory control measures for Apple and Google. Prior year 1 Google had an inventory turnover of 377 and day’s sale inventory of 1 day, in the current year inventory turnover reduced to 41, thus increasing day’s sales inventory to 9 days. Day’s inventory gives the number of days a firm takes to transform its inventory into cash. Apple has reduced the period from 10 days (prior year 3) to 3 days (current year) this shows its sales have increased. Google, on the other hand, has increased the number of days it takes to transform inventory into cash from zero days (prior year 2) to 9 days (current year). This shows its sales have been reducing rapidly.
Works Cited
Messmore, Lauren B. Inventory Management for Business Success. 2001. Read More
Cite this document
  • APA
  • MLA
(“BTN5-2 Coursework Example | Topics and Well Written Essays - 250 words”, n.d.)
BTN5-2 Coursework Example | Topics and Well Written Essays - 250 words. Retrieved from
(BTN5-2 Coursework Example | Topics and Well Written Essays - 250 Words)
BTN5-2 Coursework Example | Topics and Well Written Essays - 250 Words.
“BTN5-2 Coursework Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Earth Religion vs Space Religion

2 Pages(500 words)Essay

Lycosidae ( wolf spider)

3 Pages(750 words)Research Paper

Short case study analysis

3 Pages(750 words)Essay


... of opinions and the different perspectives of the members facilitate critical analysis of the evidences that is not only unbiased but also reasserts the democratic and fair value of the legal system. The upholding of the view point of the majority reaffirms the fairness of the judgement that is reached. It is therefore, important that the jury continue to play their part in the crown court with sincerity and knowledge based decisions. Reference Explaining the Responsibilities of the Jurors. Available from: [Accessed 2 February 2008]. Crown Court. Available from: [Accessed 2 February 2008].... A The Crown Court system in England and Wales was created under the courts Act of 1971, replacing the various Crown Courts of Liverpool, Manchester ...
4 Pages(1000 words)Essay

Week 2 discussion 2

...NASDAQ STOCK MARKET   NADAQ stock market NASDAQ COMPOSITE INDEX YEARLY RETURNS YEAR BEGINNING PRICE ENDING PRICE GAIN OR LOSS PERCENTAGE GAIN OR LOSS 2004 2003.37 2175.44 172.07 8.59% 2005 2175.44 2205.32 29.88 1.37% 2006 2205.32 2415.29 209.97 9.52% 2007 2415.29 2652.28 236.99 9.81% 2008 2652.28 1577.03 -1075.25 -40.54% 2009 1577.03 2269.15 692.12 43.89% 2010 2269.15 2652.87 383.72 16.91% 2011 2652.87 2605.15 -47.72 -1.80% 2012 2605.15 3019.51 414.36 15.91% 2013 3019.51 4176.59 1157.08 38.32% Introduction The NASDAQ stock market is an American securities exchange that is the second largest securities exchange worldwide by market value capitalization after the New York Securities exchange. Started in 1971, the stock market has... STOCK MARKET ...
6 Pages(1500 words)Assignment

Nonverbal Communication in Uncomfortable Situation

...Nonverbal Communication in Uncomfortable Situation Nonverbal communications constitute important aspect and technique ofcommunication. Nonverbal communications pass unspoken messages that tend to be concrete and likely to have long lasting impact in the content and nature of a given message. The magnitude of message or information conveyed through nonverbal communication is usually big and people need to be careful with the kinds of nonverbal techniques used. When in uncomfortable situation, nonverbal communications such as moody facial expression, disturbed posture, and confused use of gestures, indirect facial contact and unregulated body movements tend to dominate (Ungar, 2011). In counseling, the above listed nonverbal... Communication...
1 Pages(250 words)Essay

FDT 2 week 2

...The proponent of the posted thought specifically explicated that border security means keeping illegal immigrants from coming to the United s undocumented. This is an interesting point, because this is just part of the general essential points linked to understanding the idea of border security. However, the author seems to have taken it literally, though I have not seen any mistake about it, but border security could mean more than the idea of understanding the physical boundary. It should significantly tell about the whole issue of security, by which citizens will have to consider their safety and protection. I am convinced that border security means more than just the concept of the legal documentation of people coming... proponent of the...
1 Pages(250 words)Essay

Unit 2-2 FM

...Problem solving Problem solving Walgreen is among the largest drug retailing companies in the United s of America. To wordsthe month of May 2014, the company had 8,217 retail stores in 50 states in operation. Walgreen was founded in the year 1901 by Charles R, Walgreen. Walgreen has reported total; Revenue US$ 72.217 billion (2013) Operating income US$ 3.94 billion (2013) Net income US$ 2.45 billion (2013) Total assets US$ 35.481 billion (2013) Total equity US$ 19.454 billion (2013) Calculating the; ROE, net assets/shareholders equity= 13% ROA, net income/ average total assets = 7.1% The profit margin, total revenue/ gross profit = 3% Total asset turnover, average assets/ total assets= 97.2% Equity multiplier, total assets... solving...
1 Pages(250 words)Essay


... ERG Theory and Maslow’s Hierarchy The needs of an individual influence the manner of their behavior. The ERG theory by Clayton Alderfer and the Maslow’s Hierarchy of needs by Abraham Maslow, have similarities and differences. One of the similarities of both theories is that they determine that the existence of needs acts as a motivation towards people’s behavior. Another similarity is that the results of the theories ensure the fulfillment of both physical and psychological needs of individuals (Baack, p. 23). In relation to the differences of the theories, the ERG theory determines that there exist three needs as compared to Maslow’s five needs in the hierarchy. Another difference is that the ERG theory considers a random... ERG Theory...
1 Pages(250 words)Assignment

Raymond Williams' Concepts about Nature of Culture

11 Pages(2750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Coursework on topic BTN5-2 for FREE!

Contact Us