Financial Ratios and Working Capital
Select a company of your choice, and calculate the most current days of working capital (DWC) that is available. Review page 655- 656 in the textbook, (see attached) and watch the short video Working Capital,(link is below) which is one of the reading assignments in this unit. In addition to your calculations, include the information below in your essay.
- How does this company’s ratio compare to those of its competitors?
- Why is comparing this ratio to the industry average important?
- Explain how a well-managed supply chain can come into play here.
You may use the company’s web page, or keep in mind that he CSU Online Library has several databases to choose from that are good starting points for your research:
- Mergent Online,
- Business Insights: Global,
- Business Source Ultimate, and
- ABI/INFORM Collection.
Your essay should be at least two pages in length. Use APA format to cite and reference all quoted and paraphrased material,. Use a minimum of two sources, one of which may be the textbook. Include a title page, introduction, body, conclusion, and references page. An abstract is not required.
Link to video:
- TV Choice Ltd. (Producer). (2011). Working capital (Segment 3 of 6) [Video file]. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://fod.infobase.com/PortalPla ylists.aspx?wID=273866&xtid=128756&loid=450728