What is a ratio? Give an example from daily life. What are two things that are required to make ratios meaningful? What are two ways to compare ratios to increase their meaningfulness? On the attached Template, calculate the ratios and the Dupont Equation What happened to Liquidity year over year? How does it compare to industry? Is Inventory turnover better or worse than last year? Compared to industry? What does the inventory turnover describe with respect to sales? How does Days Sales Outstanding compare to industry? What does this ratio describe? Did the change from last year create or use cash? Do we use more or less debt than the industry? Is our return consistent with our use of debt? o. Using the Dupont Equation, compared to the industry, what area could we possibly improve on? tra Credit 5 points we could improve the area mentioned in question 10 to industry levels, what ould be the resulting ROE