Accounting and finance
Agurung1
Wk7Hw.docx|
2020 Working Capital Scorecard |
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Cash Conversion Cycle Formula
CCC= Days Inventory Outstanding + Days Receivables Outstanding - Days Payables Outstanding
DIO = Average Inventory / (Cost of Goods Sold/365)
DRO= Average Accounts Receivable / (Net Sales/365)
DPO= Average Accounts Payable / (Cost of Goods Sold/365)
1. Yahoofinance.com
2. Financials tab - USE ANNUAL FINANCIAL STATEMENTS
3. Calculate the components of CCC and then calculate the CCC for the most recent year presented and the prior year presented.
4. Evaluate the compoenents of the CCC and the CCC for each company. Notice trends from prior year? Notice differences between companies? Notice differences between the components for the preveious years and companies?
5. Comment on your evaluation.
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CURRENT YEAR: |
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Company |
DSO |
DRO |
DPO |
CCC |
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Walmart |
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Target |
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Dollar General |
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Costco |
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Kroger |
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PRIOR YEAR: |
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Company |
DSO |
DRO |
DPO |
CCC |
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Walmart |
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Target |
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Dollar General |
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Costco |
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Kroger |
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Comments-
