1. Financial Analysis and Forecasting – Sweet Dreams Incorporated
... 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. ... to SDI? In other words, if you were working for the bank, would you recommend that it meet SDI's request and increase the line of credit? Explain. Response: Because of the historical data in the common-size inco...
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