Assignment
Module article addresses the Cash-to-Cash Cycle Time (also referred to as the cash conversion cycle) which utilizes three of the asset management efficiency metrics. Address the following questions:
A. Why is the cash conversion cycle metric a meaningful metric?
B. What specific areas are measured in this metric and why are these areas are a "big deal" worthy of close scrutiny?
C. Would an investor (or potential investor) prefer to see a higher or lower cash conversion cycle metric result?
D. Using the Walmart annual report posted in the supplemental materials folder and the prior annual reports available at the websites provided in the the "Supplemental Course Materials" folder, calculate Walmart's cash conversion cycle for 2014, 2013, & 2012 and address the 3-year trend (in other words, is it trending better or worse)? Note: For the Days of Inventory and Days of Payable calculations, use Cost of Goods Sold. For the Days of Receivables calculation, only use Net Sales (excl. Members & other income).
E. Do the Walmart cash conversion numbers calculated in question 4 indicate Walmart is a strong performer or a weak performer? What does the year-over-year trend indicate to you?
Reference the "Metric of the Month: Cash-to-Cash Cycle Time" article.
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.