=
Sales
114,552,000
=
= 2009
Inventory 18.7 x
Inventories
6,128,000
Re ceivables
19,212,000
Days sales outstanding (DSO) =
=
= 61 days
Annualsales / 365 114,552,000 / 365
Fixed assets turnover = Sales/ Net fixed assets = Sales/ (Total asset Total
current asset)
= 114,552,000/ (114,799,000 52,539,000) = 1.84x
Total assets turnover = Sales/Total assets = 114,552,000/114,799,000 = 1x
2008
Inventory =
Sales
118,364,000
=
= 15 x
Inventories
7,879,000
Days sales outstanding (DSO) = Receivables/(Annual sales/365)
= 29,359,000/(118,364,000/365) = 91 days
Fixed assets turnover = Sales/ Net fixed assets = Sales/ (Total asset Total
current asset)
= 118,364,000/(113,331,000 51,728,000) = 1.9x
Total assets turnover = Sales/Total assets = 118,364,000/113,331,000 =
1.04x
Asset management
Inventory
turnover
2008
1.5x
2009
18.7x
Days is sales
outstanding
(DSO)
91
days
61
days
Comments
It holding too much inventory so
unproductive and represents an
investment with a low or zero rate of
return The company may be holding
obsolete goods that are not worth their
stated value.
In 2009, the low average DSO indicates
that if some customers are not paying
on time, so their receivables may end up
as bad debts that can never be
collected.
Fixed assets
turnover
1.9x
1.84x
Total assets
turnover
1.04x
1x
The company has about the right
amount of fixed assets relative to its
sales.
Inventories should be reduced and
receivables collected faster, which
would improve operations.
In 2009, the asset management is stable and better than the asset
management in 2008.