HOW MAY INVENTORY DRIVE THE FINANCIAL PERFORMANCE?

ASSIGNMENT-3 (WEEK-3)

MAY MYAT THU

COURSE - INVENTORY ANALYSIS 

(COURSERA)

OBSERVATION, INSIGHTS AND CONCLUSION

From the year 2016 to 2018, focusing on Food and staple retailing in US,

• As the inventory turnover rate increases, the operation cost over total revenue decreases.

• Higher inventory turnover may lead to lower operating cost for retailing.
  

• As Inventory turnover rate increases, the gross margin decreases.

• Thus, the higher cost of good sold for products.

• As the Inventory turnover increases, the Asset turnover rate increases.

• Therefore, the inventory turnover has positive impact over asset turnover.