I would like for you to reference the www.sec.gov and choose. (Targets Stores). Calculate the basic Inventory Ratios...Days sales in inventory and inventory turnover. Have these ratios been improving or deteriorating? Based on the reading of the 10k what strategies are employed by your respective company in managing inventory... How have those strategies manifested in the improving or deteriorating ratios? What is management saying about inventory.
Financial ratios are an invaluable and easy way to interpret the numbers found in statements. It can help to answer critical questions such as whether a company is carrying excess debt or inventory, whether customers are paying according to terms, whether the operating expenses are too high and whether the company assets are being used properly to generate income.
When computing financial relationships, a good indication of the company's financial strengths and weaknesses becomes clear. Examining these ratios over time provides some insight as to how effectively the business is being operated.
One such ratio - Inventory Turnover, shows how many times in one accounting period the company turns over (sells) its inventory and is valuable for spotting under-stocking, overstocking, obsolescence and the need for ...
This post contains clearly defined examples of the various financial ratios that are used in financial analysis process.