Monday, April 22, 2019
BTN5-2 Coursework Example | Topics and Well Written Essays - 250 words
BTN5-2 - Coursework ExampleAnalyzing the pass along of the two firms as far as chronicle turnover is concerned, it can be concluded that apple improved its strain turnover by 33.7% (111-83)/83 *100. On the other hand, Google strain turnover reduce drastically by 89% (377-41)/377*100. The analysis shows that in the current year Apple had efficient concur measures on inventory as compared to Google.According to (Messmore, 52), inventory turnover and sidereal days gross revenue inventory are interlinked and inverse proportion to each other. He further elaborate that, an increase in inventory turnover reduces days 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 days sale inventory of 1 day, in the current year inventory turnover reduce to 41, thus increasing days sales inventory to 9 days. Days inventory gives the add of days a firm takes t o 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
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