I\'m trying to figure out the ratios efficiency ratios for Dunkin\' Donuts for f
ID: 2456144 • Letter: I
Question
I'm trying to figure out the ratios efficiency ratios for Dunkin' Donuts for fiscal 2014. Their 'inventory turnover' and 'days in inventory' are 0 (unreported). The 'days in receivable' is 25.12 and 'days in payable' is 30.33. Would it still be possible to calculate the 'operating cycle' without the 'days in inventory'? What I got for the operating cycle is -5.21.
I'm also having trouble figuring out the Defensive Interval Ratio for Starbucks and Dunkin' Donuts for fiscal 2014. Can you please help me with that?
Explanation / Answer
Solution:
Caluculations of Ratios:
(A). Inventory Turnover Ratio:
Inventory Turnover Ratio = 577,135,000 / 112,914,000
= 5.11
2011 Year = 628,198,000 / 124,207,000
= 5.05
2012 Year = 658,181,000 / 144,224,000
= 4.56
2013 Year = 713,840,000 / 155,855,000
= 4.58
2014 Year = 748,709,000 / 158,978,000
= 4.70
TTM = 800,349,000 / 159,709,000
= 5.01
(B). Days in Inventory Ratio:
Days in Inventory =
(C). Ending Inventory :
Ending Inventory = 577,135,000 / 112,914,000
= 464,221,000
2011 Year = 628,198,000 - 124,207,000
= 503,991,000
2012 Year = 658,181,000 - 144,224,000
= 513,957,000
2013 Year = 713,840,000 - 155,855,000
= 557,985,000
2014 Year = 748,709,000 - 158,978,000
= 589,731,000
( * ) Days in Inventory = 464,221,000 / 112,914,000 * 365 Days
= 1,500.61
2011 Year = 503,991,000 / 124,207,000 * 365 Days
= 1,481.04
2012 Year = 513,957,000 / 144,224,000 * 365 Days
= 1,300.71
2013 Year = 557,985,000 / 155,855,000 * 365 Days
= 1,306.75
2014 Year = 589,731,000 / 158,978,000 * 365 Days
= 1,354.52
(D). Days in Receivables Ratio:
Days in Receivables = 35,239,000 / 577,135,000 * 365 Days
= 22.2 %
2011 year = 37,122,000 / 628,198,000 * 365 Days
= 21.56 %
2012 Year = 32,407,000 / 658,181,000 * 365 Days
= 17.97 %
2013 Year = 47,162,000 / 713,840,000 * 365 Days
= 21.55 %
2014 Year = 55,908,000 / 748,709,000 * 365 Days
= 27.25 %
(E). Defensive Intervel Ratio:
Defensive Intervel Ratio =
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory