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Write an Executive Summary Two Page Double Spaced ( Inventory Turnover Analysis

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EXECUTIVE SUMMARRY
Name
Institutional Affiliation

Executive Summary
Inventory turnover is the measure of the speed in turning over its inventory with a given annual trading period. That entails calculating the cost of goods sold then dividing the same with average inventory. Inventory to revenue ratio determines the ability of a company to manage their inventory levels.
The auto parts industry is associated with finding innovative techniques necessary in keeping new firms from entering the industry as well as the existence of strong-reliable relationships with suppliers and brand recognition. That is essential in for companies to survive and compete in the industry given the severity of identical products which makes it hard to differentiate one business’ products from hat of the competitors.
The focus of this paper is on the comparative analysis of inventory turnover of AutoZone and Advance Auto Part companies. That follow a thorough research into the operations and performance of these two companies.
To begin with, AutoZone is among the cost leader in the automotive industry with reputation for its excellent customer service which that company uses as a strategy of differentiation from the competitors. The company has manged to satisfy all the key success factors and as such, it has a competitive advantage over others.
A close look at AutoZone’s financial behaviour and policies reveals that the company makes use of a mixed accounting strategy when preparing its financial statements thus maintains the generally accepted accounting principles (GAAP). That is because the company applies two approaches namely conservative and aggressive approaches by stating higher cost of goods sold and lower pre-tax income so as to reduce taxes as well as stating impairments respectively.
Mainly, AutoZone utilizes inventory management, supplier relationships (for

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