Using Inventory Analysis Tools
AutoZone and O’Reilly are two competitors in the retail automotive parts industry.
AutoZone | O’Reilly | |
Average 2015 Inventory | $3,290,867 | $2,602,901 |
2015 Sales | 10,265,117 | 8,044,451 |
2015 Cost of goods sold | 4,860,309 | 3,804,031 |
Average 2014 Inventory | $3,010,556 | $2,474,917 |
2014 Sales | 9,553,090 | 7,293,858 |
2014 Cost of goods sold | 4,540,406 | 3,507,180 |
Use the information above to compute the companies’ gross profit margin and days inventory outstanding for both years.
Round answers to one decimal place (ex: 0.2345 = 23.5%).
Gross Profit Margin |
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AutoZone | O’Reilly | |
2015 | Answer 52.7 % | Answer 52.7% |
2014 | Answer 52.5% | Answer 51.9% |
Round to answers to one decimal place.
Days Inventory Outstanding |
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AutoZone | O’Reilly | |
2015 | Answer 247.1 days | Answer 249.8 days |
2014 | Answer 242 days | Answer 257.6 days |