1. Financial Analysis and Forecasting – Sweet Dreams Incorporated
... to head in its current direction. Asset Management Ratios The inventory turnover ratios (both COGS and sales versions) show that while the ratio is high in 1993 it declines to below the industry average by 1995. This shows that even with the reductions of its credit standards, SDI is turning over its inventory only 3.39 times (using COGS) and 3.98 times (using sales) in a year. SDI is ... not selling and restocking its inventory as fast as it has in previous years, which shows a possible trouble area of old inventory or lack of ... adequate sales growth. The fixed asset turnover ratio ...
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