The table, shows key financial data for three firms that compete in the consumer products market: Procter & Gamble,Colgate-Palmolive, and Clorox.
Procter & Gamble Colgate-Palmolive Clorox
Sales 65,233 15,210 5,872
Cost of goods sold 32,967 6,081 3,229
Accounts receivable 4,732 1,403 513
Inventory 4,790 1,166 497
Total current assets 25,575 4,343 1,540
Total current liabilities 28,910 3,303 2,031
Total assets 117,026 12,116 4,573
a. Calculate each of the following ratios for all threecompanies: current ratio, quick ratio, inventory turnover, average collection period, total asset turnover.
b. What company is in the position of having greatestliquidity?
c. Would you say that the three companies exhibit similar performance or quite different performance in terms of collectingreceivables? Why do you think that might be?
d. Which company has the most rapid inventory turnover? Which company appears to be least efficient in terms of total assetturnover? Are your answers to those questions a little surprising? If a company is best at inventory turnover and worst at total asset turnover, what do you think that means?
