1. Financial Analysis and Forecasting – Sweet Dreams Incorporated
... average, 0.77 to 1.20. A reason for such a decrease was sharply increased inventories in 1994-1995. Increased level of production and stimulated sales by new credit policy did not bring expected effect in sales resulting in even more increased inventories. Being the least liquid asset, increased inventory ... 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 ... ...
- Word Count: 2577
- Approx Pages: 10