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Unformatted text preview: Payable Turnover Ratio for Urban Outfitters Cost of goods sold in the current year/ average accounts payable=payable turnover ratio 1,121,140/[(62,955+74,020)/2]=16.37 Payable Turnover Ratio for Urban Outfitters: 16.37 4. Compare the latest year payable turnover ratio for each company to the industry average from the Industry Ratio Report. Are these companies doing better or worse than the average company in their industry at paying trade creditors? Both companies are more efficient, because a higher account payable ratio suggests that a company is paying its suppliers in a timely manner. 5. Using this information and any other data from the annual report or other sources, write a brief assessment of the liquidity for the two companies. Both companies seem to have liquidity higher than one. Both also each have liquidity higher than the average liquidity as well. This liquidity allows the companies to pay trade creditors, making each more efficient....
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