ACTIVITY RATIOS

ACTIVITY RATIOS - ACTIVITY RATIOS : Stock Turnover Ratio of...

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ACTIVITY RATIOS :: Stock Turnover Ratio of Ht. Leela : MAR'05 MAR'06 MAR'07 MAR'08 Ht. leela 4.28786 4.685617 4.625397 5.4049651 Stock Turnover Ratio 0 1 2 3 4 5 6 MAR'05 MAR'06 MAR'07 MAR'08 FY 2005-08 S.T.R ht. leela As per the chart the firm has shown a respectable performance in converting its inventory into stock. The ratio has followed an increasing trend from 4.3 in FY05 to 5.4 in FY08 with a 25.6% increase in efficiency of converting its stock into sales and having an average stock velocity period of 77 days. This is a positive sign for the management and their effective implementation of their efficient sales and inventory management policies as per stock turnover ratio is concerned. COMPARISON WITH INDUSTRY AND E.I.H :: MAR'05 MAR'06 MAR'07 MAR'08 industry 10.885 11.18611 14.75149 14.53957 Ht leela 4.28786 4.685617 4.625397 5.404965 eih 1.017225 1.212406 1.059833 1.389175
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Stock Turnover ratio (Industry vs ht. leela vs e.i.h) 0 2 4 6 8 10 12 14 16 MAR'05 MAR'06 MAR'07 MAR'08 FY 2005-08 S.T.R industry ht leela eih As we can observe from the chart above that industrial standards are very stringent in respect to the stock-turnover ratio with an average stock velocity of only 28 days, both of the firms are not able to perform as per the industrial standard which provides the firms for a greater scope of improvement in their inventory management and overall sales policies. But if we compare ht. leela with e.i.h, we can depict that ht. leela has a better performance in its stock turnover ratio with 77 days of stock velocity and is way above its peer which has a poor stock velocity of 304 days. This is a positive sign for ht. leela in its management activity as per the stock turnover ratio is concerned. Debtor’s Turnover Ratio of Ht. Leela ::
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ACTIVITY RATIOS - ACTIVITY RATIOS : Stock Turnover Ratio of...

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