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To: Paul Senior who wrote (8629)10/13/1999
From: Madharry  Respond to of 78715
 
It would seem to me that given what WHole food has been doing lately their inventory has to increase in relation to sales that is a given whenever you are moving into new product lines or expanding you business taking it to the next level. I think it is more important to determine whether the company's business plan makes sense and whether it looks like that business plan is being executed properly.
I think that inventory turnover is relevent in a company that is stable that is not changing its product base and not expanding into new markets.



To: Paul Senior who wrote (8629)10/13/1999 10:37:00 AM
From: jeffbas  Respond to of 78715
 
Paul, I think what you suggest is fine. However, I think that any good analysis of a company ought to look at trends in things like Accounts Receivable and Inventories versus sales. "Inventory Yield" is perhaps just putting a name on something we would see intuitively with our normal review.