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

As three of Americas leading sellers, Home Depot, Nordstrom, and Cold irrigate Creek, argon responsible for over $80 billion in one-year sales. Retail industry analysts look for commonalities in account focal point reporting in order to footstep companys ability to prod store and maximize pricing strategies and forfend having to discount r ar farm animal thus bear on profit. by means of analysis of a companys archive management ratio, out-of-door investors and inside management burn down track the consequence of times each year a company turns its inventory. Industries much(prenominal) as retail are highly sensitive to inventory management as many retail products have minuscule shelf lives due to cyclical inventory and technological advances. Through an analysis of each companys inventory methodology, it was discovered that in all told utilized the first in-first out (first in first out) method, which values inventory by applying a cost-to-retail ratio to the e nding 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 billet improvement store. Second, Nordstrom, an upscale department store is popular for its high-end cabbage and renowned customer service. Lastly, Cold pee Creek, a womens snub and accessory store that started with mail order, has moved into retail outlets in the shoemakers last three years.

Home Depot closed its 2004 fiscal year on January 30, 2005 while both Nordstrom and Cold Water Creek closed their 2004 fiscal year January 29, 2005. We examined the inve ntory be method, the motivation for the cho! ice, the inventory turnover ratio and the effect of the rear in inventories on cash flow from operations. Inventory Methods on the whole 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: OrderEssay.net

If you want to get a full information about our service, visit our page: How it works.