Analyzing Investing Activities Discussion

Analysts maintain that two of the most important ratios are inventory turnover and accounts receivable turnover. 

You are analyzing ABC Company, a computer manufacturer. You notice that inventory turnover this year is significantly lower than prior years. You also notice that accounts receivable turnover  is significantly lower this year when compared to previous years.  Provide three explanations that would be consistent with your  observation for inventory turnover and include an explanation of whether  these would be of concern to you, as well as what the effect might be  on the next period’s financial results. In addition, provide three  explanations that would be consistent with your observation of the  accounts receivable turnover, and also explain whether these would be of  concern to you.

Calculate Price

Price (USD)