A. One asset management ratio, the inventory turnover ratio , is defined as revenues divided by inventories.

Question:

A. One asset management ratio, the , is defined as revenues divided by inventories. Would this ratio be more important for a medical device manufacturer or a hospital management company?
B. Assume that Old Gatorland and Badger Manor, two operators of nursing homes, have fiscal years that end at different times say, one in June and one in December. Would this fact cause any problems when comparing ratios between the two businesses?
C. Assume a large physician group practice has a low return on equity (ROE). How could Du Pont analysis be used to identify possible actions to help boost profitability?
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...