Using the ratios and information given below for SportsOutlet.com, analyze the short-term liquidity and operating efficiency of the firm.     2015 2014 Current ratio 1.50 1.35 Quick ratio 1.15 1.08 Cash flow liquidity ratio 1.39 1.32 Average collection period 10 days 7 days Days inventory held 35 days 28 days Days payable outstanding 86 days 79 days Cash conversion cycle (41 days) (44 days) Fixed asset turnover 27.36 times 22.14 times Total asset turnover 1.93 times 2.21 times Cash flow from operations (in millions) $523 $376 Net sales (in millions) $6,743 $5,187

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Using the ratios and information given below for SportsOutlet.com, analyze the short-term liquidity and operating efficiency of the firm.

 

 

2015

2014

Current ratio

1.50

1.35

Quick ratio

1.15

1.08

Cash flow liquidity ratio

1.39

1.32

Average collection period

10 days

7 days

Days inventory held

35 days

28 days

Days payable outstanding

86 days

79 days

Cash conversion cycle

(41 days)

(44 days)

Fixed asset turnover

27.36 times

22.14 times

Total asset turnover

1.93 times

2.21 times

Cash flow from operations (in millions)

$523

$376

Net sales (in millions)

$6,743

$5,187

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