2.1.4 Inventory Turnover ratio
Inventory Turnover ratio= Cost of goods sold / Average Inventory
Inventory Turnover ratio showing how many times a company's inventory is sold and replaced over a period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales or ineffective buying.
Commonly if this ratio high, company can decrease stor
an expected loss (EL) approach. The Committee strongly supports the initiative of the IASB to move to an EL approach. The goal is to improve the usefulness and relevance of financial reporting for stakeholders, including prudential regulators. It has issued publicly and made available to the IASB a set of high level guiding principles that should govern the reforms to the replacement of IAS 39.
I. Introduction
1. Purpose of the Project
The purpose of this our group was to analyze two similar hospitality companies by using tools learned in accounting class. Based on annual reports of two companies, our group members learned how the terms learned in class is actually used in the report. We hope to understand how certain variation affects accounting items and identify why certain does
situation. In addition to that, the president of one carrier in the States said that a cash flow from its operations won’t meet liquidity needs and that it could run out of cash before year’s end.
Furthermore, FSCs have been spoiled by the increase of fuel cost which takes a big share of their operational cost and the decrease of the number of frequent flyers or long-distance customers.