Question

What is the average collection period, inventory turnover, and total asset turnover for P&G from 2016, 2017, and 2018 using http://financials.morningstar.com/balance-sheet/bs.html?t=PG&region=usa&culture=en-US

http://financials.morningstar.com/income-statement/is.html?t=PG&region=usa&culture=en-US

http://financials.morningstar.com/cash-flow/cf.html?t=PG&region=usa&culture=en-US

Answer 1

Average Collection Period = 365 Days / [Net Sales / Average Account Receivables]

Average Collection Period for 2018 = 365 / {66,832 / [(4,686 + 4,594)/2]}
=> 365 / 14.40345 = 25.34 Days

Average Collection Period for 2017 = 365 / {65,058 / [(4,594 + 4,373)/2]}
=> 365 / 14.5105= 25.15 Days

Average Collection Period for 2016 = 365 / {65,299 / [(4,373 + 4,861)/2]}
=> 365 / 14.1432= 25.81 Days

Inventory Turnover = Cost of Goods Sold / Average Inventory

Inventory Turnover for 2018 = 34,268 / [(4,738 + 4,624)/2]
=> 34,268 / 4,681 = 7.32

Inventory Turnover for 2017 = 32,535 / [(4,624 + 4,716)/2]
=> 34,268 / 4,681 = 6.97

Inventory Turnover for 2016 = 32,909 / [(4,716 + 5,454)/2]
=> 34,268 / 4,681 = 6.47

Total Asset Turnover = Net Sales / Average Total Assets

Total Asset Turnover for 2018 = 66,832 / [(118,310 + 120,406)/2]
=> 66,832 / 119,358 = 0.5599

Total Asset Turnover for 2017 = 65,058 / [(120,406 + 127,136)/2]
=> 65,058 / 123,771 = 0.5256

Total Asset Turnover for 2018 = 65,299 / [(127,136 + 129,495)/2]
=> 65,299 / 128,315.5= 0.5089