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| Topic: |
English
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| Number of pages / Number of words: |
9 / 2493 |
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The recent rise was caused by an increase in COGS, which can be attributed to an increase in merchandise sales (low margin) and a decrease in rental gross margins (explained further in gross margin ratio). A fall in inventory (attributed to improved inventory management) is also responsible for the recent rise in this ratio...
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Blockbuster has remained competitive by industry standards at effectively managing its inventory, and this is something they desire to continue to improve.2
Operating Cycle ? As expressed above, Blockbuster had a bit of lull in inventory processing in 2002-2004, but made improvements in 2005. In 2005 it took them about 51 days to collect cash from the day they first bought the inventory to when they sold it...
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General points of the essay
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