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2 years ago

AutoZone and O'Reilly are two competitors in the retail automotive parts industry.

Business

1 answer:

sineoko [7]2 years ago

7 0

Answer:

Gross Profit Margin: 53 % and 54%

Inventory days outstanding: 249 days and 252 days.

Explanation:

Gross Profit Margin = Gross Profit / Sales * 100

Gross profit = Sales - Cost of Goods Sold

Gross Profit :

Year 1 : 10,498,448 - 4,860,309 = 5,638,139

Year 2 : 8,277,782 - 3,804,031 = 4,473,751

GP margin :

Year 1 = 53%

Year 2 = 54%

Days of inventory : Average inventory / Cost of Sales * 365 days

Year 1 : 3,320,864 / 4,860,309 * 365 = 249 days

Year 2 : 2,632,898 / 3,804,031 *365 = 252 days

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sesenic [268]

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user100 [1]

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