Question

What is the number of Total Receivables, Inventory, Depreciation, Amortization, & Depletion, and
The property, Plant, & Equipment meaning?

Toll Brother Total Receivables Total Inventory Depreciation, Property, Plant, Amortization, & | & Equipment Depletion 2018 96.9 7,598.2 25.3 193.3 2017 99.3 7,281.5 25.4 189.5 2016 85.6 7,354.0 23.1 169.6 2015 78.6 6,997.5 23.6 136.8 23.0 143.0 2014 233.1 6,490.3 ** Charts are represented in millions**

• Did it 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?

Answer 1

Ans 1 Up and down will be as follows,

Particulars Reference Total Receivable Increse with sales and decerease with Realisation Total Inventory Increase with purchase and decrease with sales Depreciation Amortisation & Depletion increase year by year Preporty Plant and Equipemnt Decrease year by year based on useful life and increase with new purchase

Ans 2 Trend analysis,

Particulars Trend Analysis Total Receivable Reduced from 233.1 to 96.9 means cash received in Business Inventory level increase from 6490.3 to 7598.2 which shows purchased more Total Inventory material to maintain Minimum stock position based on sales target Depreciation Amortisation & Depletion Increasing year by year based on assets usefull life Preporty Plant and Equipemnt Reducing Assets based on usefull life and addition made in 2016, 2017 and 2018

Ans 3 Past performance of the company is good as company collected cash from customer and increase assets and inventory for future expansion and target achivement.

Ans 4 We do not have comparision with other companies data. Its fact from the record that  company increasing their assets year by year which gives them future economic life expansion. Inventory also increase to make sales level match with target. Risk reduced to bad debts as cash collected from Customers.