Activity ratios ppt examples

Description:

The image consists of two bar charts under the heading "Activity Ratios (1/2)" that visualize financial performance indicators of an unnamed company over five fiscal years (FY16 to FY20). The left chart is labeled "Inventory Turnover" and illustrates the ratio of the Cost of Goods Sold (COGS) to the Average Inventory. The right chart displays the "Receivables Turnover" ratio, which measures the efficiency of the company's credit control by dividing Net Credit Sales by the Average Accounts Receivable. Both charts show a consistent increase from FY16 to FY20, indicating an improvement in the management of inventory and receivables during this period. The bars in the charts are annotated with their respective ratio values.

Use Cases:

These slides can be applied in various industries that require efficiency in managing inventory and accounts receivable, including:

1. Retail:

Use: To evaluate inventory management efficiency.

Presenter: Financial Analyst.

Audience: Retail Management Team.

2. Manufacturing:

Use: To demonstrate improvements in supply chain efficiencies.

Presenter: Supply Chain Manager.

Audience: Company Stakeholders.

3. Healthcare:

Use: To assess hospital or clinic inventory turnover and billing practices.

Presenter: Hospital Administrator.

Audience: Healthcare Investors.

4. Technology:

Use: To show how effectively the company is converting receivables into cash.

Presenter: CFO or Financial Controller.

Audience: Shareholders.

5. Automotive:

Use: To track parts inventory turnover about sales performance.

Presenter: Operations Manager.

Audience: Dealership Owners.

6. Food and Beverage:

Use: To analyze product turnover and payment collection cycles.

Presenter: Business Operations Specialist.

Audience: Business Partners and Suppliers.

7. Wholesale Distribution:

Use: To measure the efficiency of inventory distribution and client payment processes.

Presenter: Distribution Manager.

Audience: Distribution Network Members.