Analyzing Inventory for Two Retail Grocery Companies Carrefour Group (headquartered in Boulogne-Billancourt, France) and Tesco PLC (headquartered in Welwyn Garden City, UK) compete head-to-head in the grocery space in the UK, Ireland, Central Europe, and North Africa. The following information comes from their 2018 annual reports. Carrefour Group in Tesco PLC in C millions £ millions 2017 2018 2017 €82.231 E60.366 E58.713 €79.800 60.850 62.311 54,141 53,015 19.920 6.225 5,698 7,025 2.376 2,416 47.813 44.862 45.853 Required 2018 Sales Cost of sales Gross profit 18.950 Inventory 6,442 Total assets 47.378 a. Calculate gross profit margin for each year for both companies. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). Carrefour Group 2018 Tesco PLC 2017 2017 Gross profit margin (M) Common-size inventory 96 % b. Determine the common-size inventory for each year for both companies. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). Carrefour Group 2018 Tesco PLC 2017 2017 Inventory turnover Average inventory days 2018 c. Compute inventory turnover and days average inventory outstanding for 2018. Note: Do not round until your final answer; round your final answer to one decimal place (for example, enter 6.8 for 6.77555). Carrefour Group Tesco PLC times days 2018 times days
Analyzing Inventory for Two Retail Grocery Companies Carrefour Group (headquartered in Boulogne-Billancourt, France) and Tesco PLC (headquartered in Welwyn Garden City, UK) compete head-to-head in the grocery space in the UK, Ireland, Central Europe, and North Africa. The following information comes from their 2018 annual reports. Carrefour Group in Tesco PLC in C millions £ millions 2017 2018 2017 €82.231 E60.366 E58.713 €79.800 60.850 62.311 54,141 53,015 19.920 6.225 5,698 7,025 2.376 2,416 47.813 44.862 45.853 Required 2018 Sales Cost of sales Gross profit 18.950 Inventory 6,442 Total assets 47.378 a. Calculate gross profit margin for each year for both companies. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). Carrefour Group 2018 Tesco PLC 2017 2017 Gross profit margin (M) Common-size inventory 96 % b. Determine the common-size inventory for each year for both companies. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). Carrefour Group 2018 Tesco PLC 2017 2017 Inventory turnover Average inventory days 2018 c. Compute inventory turnover and days average inventory outstanding for 2018. Note: Do not round until your final answer; round your final answer to one decimal place (for example, enter 6.8 for 6.77555). Carrefour Group Tesco PLC times days 2018 times days
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Analyzing Inventory for Two Retail Grocery Companies
Carrefour Group (headquartered in Boulogne-Billancourt, France) and Tesco PLC (headquartered in Welwyn Garden City, UK) compete head-to-head in the grocery space in the UK, Ireland, Central Europe, and North Africa. The following information comes from
their 2018 annual reports.
Carrefour Group in
€ millions
2017
2018
€ 79,800
Sales
€ 82.231 £60.366 £58.713
Cost of sales
Gross profit
60.850 62.311 54,141 53,015
18,950 19,920 6,225 5,698
6,442
Inventory
7.025 2.376 2,416
Total assets. 47.378 47.813 44,862 45.853
Required
a. Calculate gross profit margin for each year for both companies.
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Tesco PLC
Carrefour Group
2018
2017
Gross profit margin (96)
Tesco PLC in
E millions
2018 2017
Common-size inventory
96
Inventory turnover
Average inventory days
96
b. Determine the common-size inventory for each year for both companies.
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Tesco PLC
Carrefour Group
2018
2017
96
2018
times
days
96
2018
2017
96
c. Compute inventory turnover and days average inventory outstanding for 2018.
Note: Do not round until your final answer; round your final answer to one decimal place (for example, enter 6.8 for 6.77555).
Carrefour Group
Tesco PLC
96
2017
times
days
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