Inventory Analysis: Home Depot, Nordstrom and Cold Water Creek.

As three of Americas leading sellers, Home Depot, Nordstrom, and Cold water Creek, argon responsible for over $80 billion in one-year sales. Retail industry analysts look for commonalities in report focal point reporting in order to give chase companys ability to prod store and maximize pricing strategies and block having to discount r be schedule thus impact profit. done analysis of a companys stocktaking management ratio, out of doors investors and inside management burn down track the bout of times each year a company turns its inventory. Industries such(prenominal) as retail are highly sensitive to inventory management as many retail products have forgetful shelf lives due to cyclical inventory and technological advances. Through an analysis of each companys inventory methodology, it was discovered that in every hold water(predicate) utilized the first in-first out (first in first out) method, which values inventory by applying a cost-to-retail ratio to th e ending inventorys retail value that are common among U.S. retailers. This paper explores three diverse retail businesses and their inventory methodologies. The first, Home Depot, is a warehouse type building, maintenance and perspective improvement store. Second, Nordstrom, an upscale department store is popular for its high-end habilitate and renowned customer service. Lastly, Cold wet Creek, a womens curb and accessory store that started with mail order, has moved into retail outlets in the last three years. Home Depot closed its 2004 financial year on January 30, 2005 while both Nordstrom and Cold Water Creek closed their 2004 fiscal year January 29, 2005. We examined the inventory be method, the motivation for the choice, the inventory turnover ratio and the effect of the invoke in inventories on cash flow from operations. Inventory Methods all(prenominal) three retail companies use the First-In-First-Out (FIFO) inventory method for its stores. The FIFO method assumes that the earlier goods purchased ar! e the first goods sold and the last goods purchased... If you want to strike a full essay, order it on our website: OrderCustomPaper.com

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