Analyzing and Interpreting the Inventory Turnover Ratio - Dell Inc. is the leading manufacturer of personal computers. In a recent year, it reported the following in dollars in millions:
|
Net sales revenue
|
$61,101
|
|
Cost of sales
|
50,144
|
|
Beginning inventory
|
1,180
|
|
Ending inventory
|
867
|
Required:
1. Determine the inventory turnover ratio and average days to sell inventory for the current year.
2. Explain the meaning of each number.