The number of Inventory days’ mean that how many days does the enterprise need, get starts from Inventory until Consumption and Sell. The date was slightly go down In 2011. The Inventory is relate with Cost of sales which was 71923 In 2011 and 63659 In 2010. In addition, the wholesale cost has Increased 22. 4% in 2011. This situation result In the cost of sales go up and the Inventory days became decrease. Generally, the faster Inventory turnover could keep the Inventory occupancy Is lower and liquidly Is stronger, In this way to push the Inventories are easily converted Into ash.
Compare with Super-Group, Ted Baker’s Inventory days Is longer. This mean that Inventory turnover rate Is low, and result In Inventory cost Increase. The Ted Baker are present credit sales, it could lead to produce a number of accounts receivables. Debtor Days was changed from 2010 to 2013. Obviously, the data has significantly increased in 2013. Compare the Average Trade Receivables and sales revenue between 2011 and 2012, it has increase 18. 8% and 13%. However, the growth rate of sales revenue is smoothly.
So this is key factor which result in DebtorDays was go up. This situation will lead to rising costs and operating passive. Compare with Super-Group, the debtor days is almost same.
In the same industry, Debtor Days shorter could bring more Competitive power for Ted Baker. According to the line chart from above that the trend of creditor days has go down, even the data has slightly go up in 2012. Usually, Ted Baker should ensure the Creditor Days as longer as they can. This can be explained that Companies can occupy more supplier payment to supply the working capital.The Creditor Days upend on Average trade payable and Credit purchases.
After calculated the data has shown that the growth rate of Average trade payable were 9. 4%, 17. 6%.
7. 4% from 201 0 to 2013. At the same time, the growth rate of Credit Purchases was 1 1. 5%, 13. 8%, 12. 7%.
This is why the trend of Creditor days was fluctuate. However, the trend has become bad. At the same time, the Creditor day of Super-Group was 1 89 days In 2013. It Is mean that Ted Baker will undertake more stress from payable account. Measurable indicators of.The first chart show that Fixed asset turnover has decrease teen 2010 and 2013. It is depend on two factors which were Turnover and NCAA.
The information was clearly showed by second chart. The growth rate of Turnover and NCAA were both increased until 2013. The growth rate of Turnover has totally increased 2. 5%. However, the NCAA was 8. 3%. So this situation lead to Fixed asset turnover was decrease.
. The Super-Group only taken half percent of Fixed asset turnover of Ted Baker. So Ted Baker has better utilization of fixed assets than Super- Group, even the data has become lower in 2013.