Question: The following data were taken from recent annual reports of Dell Inc., a vendor of personal computers and related technology products, and Boeing Co., a manufacturer of jet aircraft and aerospace products:
Dell Inc. Boeing Co.
(in millions) (in millions)
Cost of goods sold $40,190 $44,675
Inventory, end of year 459 4,247
Inventory, beginning of the year 327 5,338
a. Determine the inventory turnover for Dell and Boeing. Round to one decimal place.
b. Would you expect Boeing's inventory turnover to be higher or lower than Dell's? Why?