Question

What is the inventory turnover rate of this company?

2016 20151 $ Cinem , except perhe amount ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, less allowances of $11.5 and $10.6 Inventories, net Prepaid expenses and other current assets Total current assets Property. plant and equipment, net Deferred income taxes Other assets, net 843.6 43.0 206.4 2.225.0 190.4 3.5OR. 730.0 1.5 195.2 2.362.1 220.0 3.5ORS 935.8 382.8 302.7 5, 120. 71 899.5 426.1 346.2 5.180.6 234.0 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings Current portion of long-term debt Accounts payable and accrued liabilities Income taxes payable Merchandise credits and deferred revenue Total current liabilities 221.6 84.2 329.1 27.1 67.9 729.9 318.0 39.9 66.1 658.0 882.5 524.2 64.5 200.7 Long-term debt Pension/postretirement benefit obligations Deferred gains on sale-leasebacks Other long-term liabilities 798.1 428.1 55.1 189.0 Commitments and contingencies Stockholders' equitys Preferred Stock. $0.01 por value: authorized 2.0 shares, none issued and outstanding Common Stock, 30.01 par value, authorized 240.0 Shares, issued and outstanding 126.8 and 129.3 Additional paid-in capital Retained earnings Accumulated other comprehensive loss, net of tax Total Tiffany & Co. stockholders' equity Non-controlling interests Total stockholders' equity 1.3 1.175.7 2,012.5 (278.1) 2.911.4 18.1 2.920. 5 5,120,7 1 1.3 1.173.6 1.950.7 (290.5 2.835.1 15.6 .850.7 ,180.6 2 $ 5 CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share amounts) 2016 4,104.9 $ 1,613.6 2,491.3 1,731.2 Net sales Cost of sales Gross profit Selling, general and administrative expenses Arbitration award expense Earnings from operations Interest expense and financing costs Other expense (income), net Loss on extinguishment of debt Earnings from operations before income taxes Provision for income taxes Net earnings Years Ended January 31, 2015 2014 4,249.9 $ 4,031.1 1.712.7 1,690.7 2,537.2 2,340.4 1,645.8 1,555.9 480.2 891.4 304.3 62.9 62.6 (2.8) (13.2) 93.8 737.5 254.9 253.3 73.5 484.2 $ 181.4 760.1 49.0 1.2 709.9 246.0 463.9 $

Answer 1

Inventory turnover rate : Cost of goods sold /Average Inventories

Average Inventories=$2225+$2362.1/2=$4587.1/2=$2293.55

Inventory turnover rate=$1613.6/$2293.55=0.70