Lexible

B. Activity Ratio
i) Inventory Turnover = Cost of Goods Sold Inventories

Year 2009

Inventory Turnover = Cost of Goods Sold Inventories

= 79.6 60 = 1.32 times.

Comment: This ratio indicates that Aeon Company does not have an overstocking problem. A high turnover indicates great sales and hence exceeding their inventory. In year 2009, Aeon Company had restock their inventory for 1.32 times.

Year 2010

Inventory Turnover = Cost of Good Sold Inventories

= 88.8 60 = 1.48 times.

Comment: Compared to the previous year, 2009, Aeon has shown improvement in their inventory replacement with little change in their inventory turnover by 0.16 times. This reflects better performance in managing inventory than ever before.

Year 2011

Inventory Turnover = Cost of Goods Sold Inventories

= 97.2 60 = 1.62 times.

Comment: With an increase of 1.62 times in inventory management of 2011, Aeon only slightly increased at where the differences between the year 2009 and 2010. This two years shows that there was a slight decline by 0.14 times, compared to the year 2009 which increased by 0.16 times.
Year 2012

Inventory Turnover = Cost of Goods Sold Inventories

= 117.1 60 = 1.95 times.

Comment: As longer the time flows, Aeon had shown an increasing improvement in their inventory management as this is might due to the company strategy to effectively promoted their stock for sales by popularize their products.

Year 2013

Inventory Turnover = Cost of Goods Sold Inventories

= 153.5 72