Fg Inventory Turn In Days Case Analysis

Asset Management  Parts Inventory Turnover in Days is higher than the industry average as a large proportion of parts must still be sourced from Asia due to lack of North American suppliers. Transportation raises the cost, and additional stock must be carried to guard against interruptions in the longer supply chain. This should improve in the future as the more local suppliers are developed and JIT principles are applied. WP Inventory Turnover in days is lower than industry average due to the modern, highly automated assembly line. FG Inventory Turnover in days is much lower than industry average due to the flexible nature of the assembly lines that allows it to quickly switch between the products. Also inventory can be delivered quickly …show more content…

Expanding into the production of home, auto and personal (MP3) sound system or licensing their technology to other manufacture may be an option. The acquisition of Bose, a privately held U.S. company, should be considered.

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Exhibit TN-1 RATIO TABLE 2005 2006 2007 2008 2009 Industry Average 2.84 0.05 32.26 7.89 188.33 30.44 66.11 192.81 2.42 1.00 0.50

Current ratio Cash Ratio Parts Inventory Turnover in Days WP Inventory Turnover in Days FG Inventory Turnover in Days A/R Turnover in Days A/P Turnover in Days Cash Conversion Cycle Fixed Assets Turnover Total assets Turnover Debt Ratio LT Debt total Capitalization Times Interest Earned Cash Flow Coverage Gross profit Margin Operating profit Margin Net Profit Margin Return on Assets Return on Equity

2.22 0.54 69.91 7.39 99.07 54.00 116.51 113.84 3.01 1.03 0.63 0.54 6.32 1.49 38.21% 15.70% 8.59% 10.50% 23.85%

2.34 0.58 71.03 5.31 112.33 51.17 118.39 121.45 6.66 1.23 0.70 0.61 6.87 1.67 42.37% 18.46% 10.25% 14.81% 41.85%

2.68 0.75 69.69 4.83 105.26 50.56 94.69 135.65 6.58 1.24 0.71 0.64 4.84 1.30 41.97% 16.13% 8.32% 12.99% 35.22%

2.52 0.63 49.19 3.50 74.31 39.83 69.86 96.97 5.34 1.46 0.65 0.57 5.73 1.47 35.22% 13.06% 7.01% 12.42% 29.41%

2.56 0.60 48.86 3.64 73.43 40.16 63.63 102.47 4.06 1.37 0.63 0.56 4.63 1.25 34.33% 11.19% 5.70% 9.98% 21.17%

3.21

38.00% 7.41% 3.32% 2.16%