Question)

What is the best explanation for a reduction in the total asset utilisation (or efficiency) of a firm?

1. There is a decrease in days inventory held (DIH) from 55 days to 25 days.
2. There is a decrease in days sales outstanding (DSO) from 50 days to 30 days.
3. There is an increase in payables payment period (PPP) from 22 days to 48 days.
4. No explanation is acceptable.