WebFieldTrip-Unit3 - Receivables Turnover Ratio: 142.8...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Professor and Class, We were asked to calculate accounts receivable turnover ratios for Coca-Cola and Wal-Mart. We were then asked to state the characteristics that indicate that these ratios are reasonable for each company. I found the following information about Coca-Cola and Wal-Mart’s accounts receivable turnover ratio’s. Coca-Cola (In Millions): Amount of Net Sales: $24,008 M Average of Accounts Receivables: $2,434 M Receivables Turnover Ratio: 9.9 (Figured as $24,008 M / $2,434 M) Some of Coca-Cola’s accounts receivables may not be paid for up to 90 days, therefore making the ratio of 9.9 seem reasonable for this company. Wal-Mart (In Millions): Amount of Net Sales: $312,427 M Average of Accounts Receivables: 2,188.5 M
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Receivables Turnover Ratio: 142.8 (Figured as $312,427 M / $2,188.5 M) Wal-Mart has many different types of account receivables. These can include transactions from pharmacy deals, and credit, debit or EBT transactions, as well as other types of accounts. Some of these accounts will have a quicker turnover rate, therefore making the ratio of 142.8 seem reasonable for this company. We must also consider that Wal-Mart is a mass consumer retailer compared to Coca-Cola who only supplies to the retailers who turn around and sale it to the consumers. Therefore, Wal-Mart is bound to have a higher turnover ratio than Coca-Cola. Wendy Eller...
View Full Document

This note was uploaded on 12/08/2009 for the course AC 116 AC 116 taught by Professor Unknown during the Spring '09 term at Kaplan University.

Ask a homework question - tutors are online