Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sal D who wrote (6144)	6/18/1998 12:29:00 AM
From: milesofstyles	Respond to of 29382

55,803,761 / 13,798,967 = 4.04 times a year* The Company "turns its inventory over" 4.04 times a year. the only difference here is it includes markups... *The real or physical turnover is found by dividing inventory, which is carried at cost, into "cost of sales." in this case the turnover would be 3.15 times a year. 43,480,981 / 13,798,967 = 3.15 times a year. this is essentially what i gave you, only with the avg of two years it may remove some fluctuation, that's the only reason i can see for it...i guess as long as you are consistent... the receivables ratio is important as well... i posted the days of inventory ratio which would have been 365/3.15=115.87 days to turn over inventory. running this several times for the past will indicate management effectiveness in this area...comparing it to others in the field will tell you how mgmt sizes up against competition. it isn't very useful til you have something to compare it to... fundamentalov in hockeytown