Calculating the inventory turnover


Task: Following is the financial information for Dell Inc.

 

2005

2004

Revenue

$49,205

$41,444

Net Incomes

3,043

2,645

Total Assets

23,215

19,311

Shareholder's Equity

6,485

6,280

Cash Flow From Operations

5,310

3,670

Basic Earnings per Share

1.21

1.03

Book Value Per Share

2.61

2.46

Closing Stock Price

33.44

23.86


Question 1: What is Dell’s Profit margin for 2004?

A) 6.27%
B) 6.18%
C) 6.38%
D) 6.86%

Question 2: What is Dell’s Profit margin for 2005?

A) 6.27%
B) 6.18%
C) 6.38%
D) 6.86%

Question 3: What is Dells P/E ratio for 2005?

A) 27.63
B) 12.81
C) 23.65
D) 9.70

Question 4: What is Dell’s Assets Turnover for 2005?

A) 2.12
B) 3.58
C) 3.65
D) 2.31

Question 5: Given the following information, calculate the inventory turnover for ABC Col for 2005 (Pick the closest number).

(Thousands of $)                     2005                      2004

Sales                                    $19,535                  $15,470

Cost of Goods Sold                $15,101                  $11,184

Inventory                                $2,708                   $2,180

A)    8.96
B)    7.22
C)    6.93
D)    6.18

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Finance Basics: Calculating the inventory turnover
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