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Stock Turnover:
The value of inventories in 2007 increased 6.5% than in 2006 and was 10.2% lower in 2008 than 2007 (Annual reports 2006, 07, 08). Stock turnover for JJB increased from 3.27 times in 2006 to 3.32 times in 2007 and 3.53 in 2008 representing a marginal increase of 7.36% from 2006 to 2008. This indicates that JJB was able to turnover its inventories faster in 2008 than in previous years. Invariably, the company sold the value of its stocks many times in 2008 than any of the other two years as shown in the charts. JD’s cost of sales increased by ___% from 2006 to 2008 while inventories reduced in 2007 as compared to 2006 and 2008.
JD’s stock turnover for the three years i.e. 5.13, 5.41 and 4.69 in 2008, 2007 and 2006 respectively is higher than that of JJB’s 3.53, 3.32 and 3.27 in 2008, 2007 and 2006 respectively. This implies that JD has its money less tied-up for stock than JJB.
Tangible Assets:
This is a measure of revenue in comparison with available tangible asset for the years. JJB’s revenue increased in 2008 marginally from £810,287 in 2007 to £811,754 while in 2006 JJB recorded revenue of £745,238. Subsequently, tangible assets grew in 2007 from £189,222 in 2006 to £198,980 and 2008 figures dropped marginally to £198,272. Revenue increase and drop in tangible asset value in 2008 accounted for the increase in the tangible asset turnover in 2008 as compared to other 2006 and 2007. Indicating that tangible asset where efficiently utilised to generate revenue indicating a turnover of 4.09 times in 2008 as against 4.07 and 3.94 times in 2007 and 2006 respectively.
JD’s revenue increased by 8.21% in 2007 fro ...