What can be done to counteract negative trends,or continue with positive trends? What actions do you recommend management take?

Analysis of Accounts Receivable and Inventory

Calculating ratios is only the first step in the analysis process, the ratios results need interpretation.

What do the result indicate about the financial performance?

Consider how these values are changing. Interpret these changes as positive or negative for the corporation.

What can be done to counteract negative trends,or continue with positive trends? What actions do you recommend management take?

Also, relate changes in revenues and cost of goods sold values to changes in accounts receivable and inventory from year to year.  Do the changes in revenues and cost of goods sold agree with the changes in accounts receivable and inventory?