mr franck

The number of Inventory days’ mean that how many days does the enterprise need, get starts from Inventory until Consumption and Sell. The date was slightly go down in 2011. The Inventory is relate with Cost of sales which was 71923 in 2011 and 63659 in 2010. In addition, the wholesale cost has increased 22.4% in 2011. This situation result in the cost of sales go up and the Inventory days became decrease. Generally, the faster inventory turnover could keep the inventory occupancy is lower and liquidity is stronger, in this way to push the Inventories are easily converted into cash. Compare with Super-Group, Ted Baker’s inventory days is longer. This mean that inventory turnover rate is low, and result in inventory cost increase.

The Ted Baker are present credit sales, it could lead to produce a number of accounts receivables. Debtor Days was changed from 2010 to 2013. Obviously, the data has significantly increased in 2013. Compare the Average Trade Receivables and sales revenue between 2011 and 2012, it has increase 18.8% and 13%. However, the growth rate of sales revenue is smoothly. So this is key factor which result in Debtor Days was go up. This situation will lead to rising costs and operating passive. Compare with Super-Group, the debtor days is almost same. In the same industry, Debtor Days shorter could bring more Competitive power for Ted Baker.

According to the line chart from above that the trend of creditor days has go down, even the data has slightly go up in 2012. Usually, Ted Baker should ensure the Creditor Days as longer as they can. This can be explained that Companies can occupy more supplier payment to supply the working capital. The Creditor Days depend on Average trade payables and Credit purchases. After calculated the data has shown that the growth rate of Average trade payables were 9.4%, 17.6%. 7.4% from 2010 to 2013. At the same time, the growth rate of Credit Purchases was 11.5%, 13.8%, 12.7%. This is why the trend