Hca/270 Week 8 Ratio Analysis

Inventory Method: The inventory amount for the year ended 12/31/2016 is $14,760,000,000 which is an $759,000,000 increase from the previous year. CVS uses the lesser of the weighted average cost or market value when determining the value of inventory. Inventory is verified for accuracy by regularly doing physical counts in all locations. Between physical counts, CVS uses sales results from previous years to accrue the estimated physical loss. These estimates are determined for each individual store and warehouse separately to ensure the most accurate information possible is reported. CVS has decided to use a new method available after annual periods beginning after 12/15/2016 known as the lower of cost and net realizable value to replace using

The liquidity of firm can be measured by computing certain ratio’s such as current ratio and acid ratio. For measuring Target Corporation’s 2014 liquidity; the firm’s current ratio and the acid ratio is computed. The company’s current ratio is 0.91 times which is computed by comparing current asset ($11, 573,000) with current liabilities ($12,777, 000) of the year 2014 (TGT Company Financial, n.d). The firm’s acid ratio is 0.26 times which is computed by deducting inventory ($8,278,000) from current assets. The inventory is deducted from current assets because the company has not received any money for the unfinished good or from unsold inventory worth ($8,278,000). To analyze the Target Corporation’s liquidity trend in 2014; the current ratio and acid ratio of 2014 is compared with the 2015’s ratios. In 2015, the firm’s current ratio was 1.20 times and the acid ratio was 0.45 times. These liquidity ratios reflect that the firm’s liquidity was better in 2015 than 2014. (See Table 1).

The danger in using/ smoking tobacco starts at a young age until the adult age. Smoking can cause bad illness while also harming the person body and body organs. Smoking not only affects the person that uses, it also affects the people around you daily. Using tobacco can cause premature death too both the smoker and the nonsmoker, it called (second hand smoke). Tobacco smoking has been known to cause over 400,000 deaths every single year in the U.S (Wiley, 2011). People use tobacco smoking for many of reasons, some just for being cool, or trying to just fit in, and also watching family member smoke. Even though people know the bad and unhealthy

To finish week 5 we discussed the importance of healthcare professionals being informed about their patients' current CAM use. The importance of CAM is something all healthcare professional need to know and understand because this can be a life threatening issue if a professional does not know about it. In addition as a healthcare professional I must know the back ground of the patient to make sure that the proper care is being given to the patient. It is the duty of the healthcare provider to ask all the proper questions and to get the patient to open up. The power point mention how popular CAM is becoming this is why precautions must be taken, “The widespread use of CAM has produced government agencies who are charged with investigating health

Days in inventory is a "measure of the average number of days inventory is held; calculated by dividing 365 by inventory turnover ratio" (Kimmel et al, 2007, p. 292).

|Nongraded Activities and|Read the Associate Level Material: Final Project Overview and Timeline located on your student|Day5 | |

On paper, we show that we have $30,000 worth of inventory left at the store. ------------------------------------------------------------------------------------- ----------------------------------------------------------

1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms?

Liquidity ratio. The firm’s liquidity shows a downward trend through time. The current ratio is decreasing because the growth in current liabilities outpaces the growth of current assets. The quick ratio is also declining but not as fast as the current ratio. From 1991 to 1992, it only decreased 0.35 units while the current ratio decreased 0.93 units. Looking at the common size balance sheet, we also see that the percentage of inventory is growing from 33% to 48% indicating Mark X could not convert its inventory to cash.

With this company the inventory management ratios further indicate that there may be an issue with inventory and inventory controls. The inventory turnover ratio is lower than the industry average and the days’ sales in inventory are high. A company wants to turn inventory quickly to reduce storage costs, and

Liquidity In analyzing liquidity of the company, the current ratio is not very telling of a falling company. The company increased its ratio throughout the period of the income statement thus building upon its company assets and allowing for a 6-1 ratio of assets over its liabilities. This implies the company is still able to operate sufficiently even though it did not make its optimum current ratio of about 8-1. However, when one takes the inventory out of the equation with the quick ratio, the numbers show the true strength of short term liquidity. The numbers are still good, and do not indicate failure – but are

A third activity ratio is the inventory turnover ratio, which indicates the effectiveness with which the company is employing inventory. Since inventory is recorded on the balance sheet at cost (not at its sales value), it is advisable to use cost of goods sold as the measure of activity. The inventory turnover figure is calculated by dividing cost of goods sold by inventory:

Inventory turnover for Company A (3.08x) is higher than Company B (0.93x), that means inventories are sold and replaced faster than Company B. Company A has higher turnover because those institutions, especially hospitals “consume” health products faster and more. Lastly its show Company A has deep pipeline of its ethical pharmaceuticals.

❖ Historical inventory turnover rates should be analyzed so to identify the appropriate range of supplies to be on hand in each category.

Inventory turnover is the measurement of the number of times inventory is sold or used in a time period such as a year where measure the firm’s operational efficiency in the management of its assets. The equation for inventory turnover equals the Cost of goods sold divided by the average inventory where average inventory equals beginning inventory plus the ending inventory and divided by 2. Besides, inventory turnover is also known as stock turns. The formula for inventory turnover is as follows: