MGM390H5 Study Guide - Final Guide: Inventory Turnover, Asset Turnover, Reserve Requirement
Document Summary
Mgm320 final exam: business description- interesting issues, strategy. Sales net income growth, sales growth (net income growth > sales growth- operating leverage, expense control) Total comprehensive income-net income + other operating income (foreign operations, revaluation of fixed, benefits plan) Dupont analysis roe (profit margin, asset turnover, financial leverage),roa, rona (net operating profit margin, net operating asset turnover). Cash conversion cycle (pay its inventory and received its cash) & operating cycle ( days between purchase its inventory and received its cash back) Account receivable turnover, account receivable days- takes a firm to collect its cash. Inventory turnover, inventory days- takes a firm to sell its inventory. Account payable turnover -management"s success in using trade credit to finance purchase of goods and service, account payable days- takes a firm to pay its creditors. Expense- advertising cost, sg&a (reasons: balance sheet analysis. Asset turnover- fixed asset turnover, total asset turnover.
