Using the ratios and information given below for SportsOutlet.com, analyze the short-term liquidity and operating efficiency of the firm. 2015 2014 Current ratio 1.50 1.35 Quick ratio 1.15 1.08 Cash flow liquidity ratio 1.39 1.32 Average collection period 10 days 7 days Days inventory held 35 days 28 days Days payable outstanding 86 days 79 days Cash conversion cycle (41 days) (44 days) Fixed asset turnover 27.36 times 22.14 times Total asset turnover 1.93 times 2.21 times Cash flow from operations (in millions) $523 $376 Net sales (in millions) $6,743 $5,187
Using the ratios and information given below for SportsOutlet.com, analyze the short-term liquidity and operating efficiency of the firm. 2015 2014 Current ratio 1.50 1.35 Quick ratio 1.15 1.08 Cash flow liquidity ratio 1.39 1.32 Average collection period 10 days 7 days Days inventory held 35 days 28 days Days payable outstanding 86 days 79 days Cash conversion cycle (41 days) (44 days) Fixed asset turnover 27.36 times 22.14 times Total asset turnover 1.93 times 2.21 times Cash flow from operations (in millions) $523 $376 Net sales (in millions) $6,743 $5,187
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 78E
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Using the ratios and information given below for SportsOutlet.com, analyze the short-term liquidity and operating efficiency of the firm.
|
|
2015 |
2014 |
|
Current ratio |
1.50 |
1.35 |
|
Quick ratio |
1.15 |
1.08 |
|
Cash flow liquidity ratio |
1.39 |
1.32 |
|
Average collection period |
10 days |
7 days |
|
Days inventory held |
35 days |
28 days |
|
Days payable outstanding |
86 days |
79 days |
|
Cash conversion cycle |
(41 days) |
(44 days) |
|
Fixed asset turnover |
27.36 times |
22.14 times |
|
Total asset turnover |
1.93 times |
2.21 times |
|
Cash flow from operations (in millions) |
$523 |
$376 |
|
Net sales (in millions) |
$6,743 |
$5,187 |
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