Polaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions):2012 2011 2010 2009Net Sales Revenue $3,200 $2,660 $1,990 $1,570Cost of Goods Sold 2,280 1,900 1,460 1,170Average Inventory 320 270 210 200Required:1. Calculate to one decimal place the inventory turnover ratio and average days to sell inventoryfor 2012, 2011, and 2010.2. Comment on any trends, and compare the effectiveness of inventory managers at Polaris toinventory managers at its main competitor, Arctic Cat, where inventory turned over 5.4 timesin 2012 (67.6 days to sell). Both companies use the same inventory costing method (FIFO)
Polaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions):
2012 2011 2010 2009
Net Sales Revenue $3,200 $2,660 $1,990 $1,570
Cost of Goods Sold 2,280 1,900 1,460 1,170
Average Inventory 320 270 210 200
Required:
1. Calculate to one decimal place the inventory turnover ratio and average days to sell inventory
for 2012, 2011, and 2010.
2. Comment on any trends, and compare the effectiveness of inventory managers at Polaris to
inventory managers at its main competitor, Arctic Cat, where inventory turned over 5.4 times
in 2012 (67.6 days to sell). Both companies use the same inventory costing method (FIFO)
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