1. Which showed the greatest improvement (or least decrease) in productivity as measured by Asset Turnover?
2. Based on the available information what would you say was the biggest cause of this increase (or lesser amount of decrease) in productivity?

Estimate Cost Structure of the 2 companies. Use the ratio of current assets to total assets as an estimate of the cost structure.

1. Which company has a higher fixed cost structure?
2. In this exercise, do you think that the current ratio is a reasonable representation of the relative cost structure of your two companies? Hint: This would depend on the nature of the non-current assets of your companies.
3. Is the year-to-year change over the past 2 years, in the same direction for the 2 companies?