Manufactutring Inventories trade and sales

Manufacturing Inventories Trade and Sales Report
The analysis in this report is mainly to show the inventories/sales ratio from February to April in relation to what we learnt in class. After looking at the same topic for several weeks now, I realized that the inventories/sales ratio was reducing every week. What was the meaning of the inventories/sales ratio in the economic performance of the company? That was my main question as I looked into this topic. I would make my deductions after seeing what the ratio was this month in relation to February. I expected an inverse relationship between the ratio and the economic performance. Therefore, a fall in the inventories sales ratio would depict a worsening situation for the firm.
There are several indications of a trend whereby the ratio is reducing. It might mean that the sales are increasing at a faster rate than inventories, suggesting an overheating economy. Such an indication might prompt the management to increase production as one of the measures. On the national economy front, a falling ratio leads to a fall in bond and stock prices.
Another scenario would have been a rise in the ratio. In this case, bond and stock prices rise. However, this is not always the case because if the economy weak, people might be more concerned about a likely recession. Since the economy is currently improving, I expected the prices for both bonds and stocks to be directly proportional to the inventories sales ratio (Schwab, 75-85).
After consideration...