Question

Did Total Receivables, Total Inventory, Depreciation, Amortization, & Depletion, Property, Plant, & Equipment go up or down over time?
What does this trend potentially mean?
Is this company performing better with respect to this item in the past?
Is this company performing better than its competitors with respect to this line item?
Is there any connection between receivables and inventory?
Is there any connection between PPE and depreciation?

Total Inventory Installed Building | Total Products Receivables Depreciation, Property, Plant, Amortization, & | & Equipment Depletion 2018 214.1 61.2 25.4 90.1 2017 180.7 48.3 26.9 81.1 2016 128.5 40.2 11.3 67.8 2015 103.2 29.3 6.3 57.6 2014 72.3 24.0 2.8 39.4

Answer 1

Answer to questions :

1. Total Receivables , Total Inventory, Depreciation , Amortization&Depletion, Property,Plant & Equipment went up over time

2. This trend indicates that the business is growing with respect to financial position of the company is concerned

3. Yes, this company is performing better with respect to this item in the past

4. As the figures of competitors are not available , a comparison of performance with that of competitors cannot be done

5. The concepts of Inventory and Receivables are distinct. but both are short term assets and hence are connected. Also Receivables cannot be existed without inventory. In the given example Inventory receivable  turnover ratio cannot be calculated as information regarding sales are not available. But the growth of inventory (255%) and Receivables (296%) over the time are in the right direction and hence there is no any concern.

6. Yes there is connection between PPE & Depreciation. Depreciation indicates value of assets which was used during a period for smooth functioning of business. A business uses assets for production purpose or for day to day functioning of the company, In the given problem depreciation has increased by 907% whereas the asset value has been increased by 229%, which is not a favorable condition. Proper analysis has to be done to identify the reason