please explain what these ratios mean for Target 3. ACTIVITY RATIOS - 2013 2014

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

Explanation / Answer

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.

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