Week 3 Topic 3 Analyzing Inventory Ratios Assignment

Week 3 Topic 3 Analyzing Inventory Ratios Assignment



Analyzing Inventory Ratios Assignment




Assignment Description – Requires LopesWrite



The purpose of this assignment is to calculate asset ratios, then analyze and compare them between two competitors in the same industry.




Review the most recent annual reports of The Coca Cola Company and PepsiCo and focus on the balance sheet and inventory note included in the notes to the financial statements. Calculate the following ratios for each company for the last 2 years using Microsoft Excel. Be sure you are utilizing the correct formulas and a separate tab for each ratio:




Inventory turnover

Average days in inventory



In a Microsoft Word file, prepare a memo to the instructor discussing the following. Be sure to include a minimum of one paragraph per company to support your findings.




Explain the meaning of each ratio and what the calculated results tell you about each of the companies. Refer to the calculated ratios in your analysis. Your explanation should consider how the ratios have changed in the last 2 years. Your explanation should include a separate paragraph for each ratio.

Summarize how effective each company is in managing inventory based upon the type(s) of products the company sells and the industry in which it competes. Include discussion about whether the inventory turnover ratio is increasing or decreasing, what is causing the ratio increase/decrease, and whether the total value of inventory is increasing or decreasing on the balance sheet.



General Requirements:



Submit the Excel file that contains your ratios and a separate Word file using an appropriate memo template. Please include a reference page as the last page of the memo document.


Name the Excel file “LastnameFirstinitial.T3Ratios” and name the Word document “LastnameFirstinitial.T3Memo.”


While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.


This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.


You are required to submit this assignment to LopesWrite. A link to the LopesWrite technical support articles is located in Class Resources if you need assistance.


Note: LopesWrite is an electronic grammar, spelling, and citation checker tool


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