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Reading Financial Reports For Dummies, 4th Edition
book

Reading Financial Reports For Dummies, 4th Edition

by Lita Epstein
April 2022
Beginner content levelBeginner
384 pages
9h 56m
English
For Dummies
Content preview from Reading Financial Reports For Dummies, 4th Edition

Chapter 14

Turning Up Clues in Turnover and Assets

IN THIS CHAPTER

check Comparing inventory valuation systems

check Counting inventory turnover

check Measuring fixed assets turnover

check Assessing total asset turnover

Testing how well a company manages its assets is a critical step in measuring how effectively it uses its resources. Inventory is the most important asset for generating cash for any company that sells a product.

Many factors directly impact the cost of selling a product, including producing the product, purchasing the products or materials not produced in-house, storing the product until it's sold, and shipping the product to the customer or store where it's sold. And if a company doesn't sell its product fast enough, the product may become obsolete or damaged before it's sold.

In this chapter, I review the measures you can use to gauge how well a company manages its assets, especially its inventory, and how quickly the company sells the inventory.

Exploring Inventory Valuation Methods

A company must know the value of its inventory to complete its balance sheet. In addition, the company ...

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Publisher Resources

ISBN: 9781119871361Purchase Link