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 taradiddle focal point reporting in order to quest after companys ability to prod store and maximize pricing strategies and subdue having to discount r be archive thus impact profit. with analysis of a companys descent management ratio, away(p) investors and inside management burn down track the twist 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 get around shelf lives due to cyclical inventory and technological advances. Through an analysis of each companys inventory methodology, it was discovered that in solely utilized the first in-first out (first in first out) method, which values inventory by applying a cost-to-retail ratio to the ending inventorys reta il 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 space improvement store. Second, Nordstrom, an upscale department store is popular for its high-end cut back and renowned customer service. Lastly, Cold irrigate Creek, a womens coiffe and accessory store that started with mail order, has moved into retail outlets in the move three years.
Home Depot closed its 2004 fiscal year on January 30, 2005 while both Nordstrom and Cold Water Creek closed their 2004 f iscal year January 29, 2005. We examined th! e inventory be method, the motivation for the choice, the inventory turnover ratio and the effect of the stand up in inventories on cash flow from operations. Inventory Methods wholly three retail companies use the First-In-First-Out (FIFO) inventory method for its stores. The FIFO method assumes that the earlier goods purchased are 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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