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Business
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| Number of pages / Number of words: |
2 / 553 |
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This brings to not major, yet survivable balance for Sun to stay safe, under control and to move forward.
2. Inventory ratios show how fast the inventory is being produced and sold. Inventory turnover ratio of 28 in 2000 and only 17 in 2001 show how quickly the inventory, the raw materials, goods in process, or ready goods, is being turned over or sold to generate sales...
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The higher ratio of 28 in 2000 implies that the firm is more efficient in managing inventories by minimizing the investment in inventories. But this could also mean shortages, to make sure that no changes were in inventory reporting policy. The latest may not be the case due to noticeable decline in the next year...
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