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Comparative Analysis Problem For Amazon

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Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores, Inc.
Norbie Lara
October 17, 2017
ACC/290
Scott Woodward

Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores
The Inventory turnover is the ratio that will shows how many different times in a year, that the business convert’s it’s inventory into sales. When doing inventory for a business it ensures to make sure that there is enough inventory that will contrast to the amount of sales and the levels that are need. With having higher ratio indicates that business is performing stronger since many of their customers come to purchase their items that are in stock. But having lower turnover ratio can show that there are few customers are purchasing
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Now, for Amazon (8299+7411)2=7855 then divide 62,752 switch given inventory turnover of 7.99. Now Wal-Mart inventory turnover can be higher if they did not manage their purchases as well as they do. Wal-Mart has only purchase their inventory base on items they are sure will sell. The low value inventory turnover from The Amazon Company can show that they do not how to control their purchasing for inventory or the purchasing system may not work correctly. By these will thus in action of buying a lot of items which can idle at the end of year. This could cause the inventory to become obsolete and have higher value lose. The days in inventory can give a lot information and can show the ratio of the numbers that is need to know on how many days that inventory has had to be held in warehouse, before been ship to stores, purchase by customers. The receivable can be compared to the business sales track activity and then can show the ratio. These is call the average collection period or the days sales outstanding. The comparison can be used to indicate these periods to show when customers are going to pay off their dues that company needs. Now, when it comes to low ratio indicates can show better outcome. These can imply that customers are purchasing more inventory within shorter period. The high statistic can imply that customers could buy more of the inventory, switch can hold inventory for longer
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