For each student – Three tasks to do and to post:Based on the three-year financial statements of...

Question

For each student – Three tasks to do and to post:Based on the three-year financial statements of your company,calculate asset management ratiosthat are covered in the video of Week 10 for your company in thelast three years. Please use the same “Ratios” sheet in your Excel file where you calculated liquidity ratios in Week 9and label each ratio well. Please show your calculation of ratios in the Ratios sheet as well. Please upload/attach the Excel file in your post.Given the calculated ratios, conduct analysis of asset management ratios of your company. Compare and evaluate asset management ratios of the 2 (or 3) companies of your group.

Khushboo · Accepted Answer

Analysis of the asset management ratio of Pepsico and its comparison with the other company (AutoZone)
The asset management ratio helps in analyzing the efficiency of the entity in utilizing its resources for the generation of revenue for the entity. The inventory turnover ratio of the entity has reduced in the current year as compared to the previous year. This states that the ability of the entity in converting its inventory into sales has been reduced. Further, it shows that the entity is holding its inventory for a longer period in the current year as compared to the previous two years. This is evident from the days' sales in inventory ratio that the holding period of inventory has increased to 47.89 days in the current year which is higher as compared to the previous period. On the other hand, the inventory turnover ratio and days sales in inventory ratio of the entity is far better than the ratio of AutoZone which states that the entity is performing well as compared to other entities.
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For each student – Three tasks to do and to post: Based on the three-year financial statements of your company, calculate asset management ratios that are covered in the video of Week 10 for your...

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