Question

please explain what these ratios mean for Target

3. ACTIVITY RATIOS
-	2013	2014	2015	2016	2017	Industry Average
Inventory Turnover	9.3	8.2	8.3	8.6	8.4	8.53
Days of Inventory	56	63	63	60	62	60.78
Net Working Capital Turnover	31.10	-59.58	30.89	48.93	-96.79	-9.09
Asset Turnover	1.5	1.6	1.8	1.8	1.9	1.72
Fixed Asset Turnover	239.13%	217.49%	265.83%	282.35%	273.16%.	255.59%
Average Collection Period	0.0	6.9	5.6	3.9	3.9	4.06
Accounts Receivable Turnover		5273.50%	6275.22%	8952.37%	8942.99%	7361.02%
Accounts Payable Period	43.60	54.40	54.82	51.71	53.81	51.67

Answer 1

How long would it take you to convert your assets into cash? The answer to this question is especially important for businesses to answer. For example, companies need to know how fast they can access their cash so they can pay their bills. Businesses also need to gauge the efficiency of their business practices, which they can do using activity ratios. Activity ratios are financial analysis tools used to measure a business' ability to convert its assets into cash.