Instructions:
1. Identify which of the following strategies you will use to complete the “Find the Relevance” section below: I will show the parallels between the content of this course and the ongoing operations of a company whose services I use, admire, am familiar with, or hope to work for.
2. Complete the grid below.
Find the Relevance Questions
1. What industry is your chosen organization in? Answer:
2a. Which of these asset management ratios would be most appropriate for use in that organization?
• DSI
• DSO
• DPO
2b. Would any of these not be appropriate in your organization?
Briefly explain your thinking. Answer:
3. Which would be more helpful to your firm: fixed asset turnover or total asset turnover ratio? Briefly explain your thinking.
Answer:
4. If you want to assess how well positioned your organization is to meet its obligations, which of the following would you expect to use? Would you expect that they’re all used in your organization? Briefly explain your thinking.
• Liquidity ratios
• Coverage ratios
• Leverage ratios Answer: