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The Sales Revenue Per Dollar Invested

Essay by   •  September 16, 2012  •  Essay  •  471 Words (2 Pages)  •  1,370 Views

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A. Alerts

B. Query

C. AD HOC Reports

★ ★ ★ D. Audit ★ ★ ★

E. Standard Reports

1. The reason for BI becomes the popular research topic in both business circle and software development circle.

★ ★ ★ A. Enhance the competitive advantage of enterprise and IT circle aware of the importance of BI. ★ ★ ★

B. People like BI

C. BI becomes an important part for people to make more money

D. BI contains high technology

E. BI is useful.

2. We talked about BI in class, which means

A. Behavior Identify

★ ★ ★ B. Business Intelligence ★ ★ ★

C. Bismuth

D. Bureau of Investigation

E. Don't know

Asset turnover ratio:

This ratio indicates the sales revenue per dollar invested in the assets of the business. For Apple, the sales revenue per dollar invested in the assets of the business is 1.06. For Dell, the sales revenue per dollar invested in the assets of the business is 1.70. Compare these two companies; Dell has the higher ratio, so it is more efficient to utilize its assets.

Receivable turnover ratio:

The ratio determines the average number of times the process of selling and collecting on account occurs during the period. For Apple, the average number of times this process occurs during the period is 42.34; for Dell, the average number of times this process occurs during the period is 9.97. Compare them; Apple has a higher ratio, which means that Apple holds the better faster turnover.

Days to collect:

A measure of the average number of days from the time a sale is made on account to the time it is collected. For Apple, the average number of days from sale on an account to collection is 8.62; the average number of days from sale on an account to collection for Dell is36.59. Dell has a higher number, so it takes a long time for them to collect receivables.

Inventory turnover

The ratio indicates that the number of times that the process of buying and selling inventory during the period. In a period, the number of times for Apple Company buys and sells inventory is 52.51; For Dell, the number of times is 42.60.

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