Question

Please elaborate about the Asset Turnover for Adobe & Oracle and for the Receivables Turnover for Adobe & Oracle?

Efficiency    Ratio		Avg. Total Assets	Account Receivables	Asset Turnover	Receivables Turnover
Adobe		13,616,401.00	1,217,968.00	0.54	8.76
Oracle		136,127.50	5,279.00	0.03	0.72

Answer 1

Asset turnover = sales/ average total asset

while analysin the data we can say that oracle performed poorly in comparison to Adobe, and it should focus on generating more revenue to be competitive in near future.

Receivables turnover = sales/account receivables

again in this front Adobe performed better than Oracle because Adobe has higher value of receivables turnover which tells that it is getting money rapidly on its receivables in comparioson to Oracle.

If we calcualate the days of sales outstanding which is 365/receivables turnover then we will find that the value for Oracle will be 507 days which tells that it is getting back its receivable in almost 1.39 years which is creating its money idle for long time and that's why it is opportunity loss for oracle.