Write down why do you think there is a problem in CA(current asset) management

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 12MCQ: Which of the following statements is true? a. The fixed asset turnover ratio assists managers in...
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Write down why do you think there is a problem in CA(current asset) management

Asset Management Ratios
2020E
2019
2018
Ind.
FA TO
8.6x
6.4x .
10.0x
7.0x
ΤΑ ΤΟ
2.0x
2.1x
2.3x
2.6x
This problem was caused by excessive current assets.
' Inventories should be reduced and A/R collected faster.
Transcribed Image Text:Asset Management Ratios 2020E 2019 2018 Ind. FA TO 8.6x 6.4x . 10.0x 7.0x ΤΑ ΤΟ 2.0x 2.1x 2.3x 2.6x This problem was caused by excessive current assets. ' Inventories should be reduced and A/R collected faster.
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