The inventory turnover ratio across companies in the electronics industry is 12.6905x. Based on this information, which of the following statements is true for Crockett Electronics? O Crockett Electronics is holding less inventory per dollar of sales compared with the industry average. O Crockett Electronics is holding more inventory per dollar of sales compared with the industry average.
The inventory turnover ratio across companies in the electronics industry is 12.6905x. Based on this information, which of the following statements is true for Crockett Electronics? O Crockett Electronics is holding less inventory per dollar of sales compared with the industry average. O Crockett Electronics is holding more inventory per dollar of sales compared with the industry average.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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![The inventory turnover ratio across companies in the electronics industry is 12.6905x. Based on this information, which of the following statements is
true for Crockett Electronics?
O Crockett Electronics is holding less inventory per dollar of sales compared with the industry average.
O Crockett Electronics is holding more inventory per dollar of sales compared with the industry average.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b683749-58e5-4e30-bd6b-95e0226f4526%2F2e77c9ba-6669-4ddf-9843-10a7f385934e%2Fmaor6jh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The inventory turnover ratio across companies in the electronics industry is 12.6905x. Based on this information, which of the following statements is
true for Crockett Electronics?
O Crockett Electronics is holding less inventory per dollar of sales compared with the industry average.
O Crockett Electronics is holding more inventory per dollar of sales compared with the industry average.
![Crockett Electronics has a quick ratio of 2.00x, $30,150 in cash, $16,750 in accounts receivable, some inventory, total current assets of
$67,000, and total current liabilities of $23,450. The company reported annual sales of $300,000 in the most recent annual report.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b683749-58e5-4e30-bd6b-95e0226f4526%2F2e77c9ba-6669-4ddf-9843-10a7f385934e%2F5zb749i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Crockett Electronics has a quick ratio of 2.00x, $30,150 in cash, $16,750 in accounts receivable, some inventory, total current assets of
$67,000, and total current liabilities of $23,450. The company reported annual sales of $300,000 in the most recent annual report.
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