Understanding ratios
T-Z has decided to do a comparison and analysis between their company, and a competitor, ShirtCo. Below is the information collected:
Ratio | T-Z | ShirtCo |
---|---|---|
Debtor Days Ratio | 17.5 | 6.8 |
Days Payable Outstanding | 59 | 91 |
Inventory Days Ratio | 171 | 205 |
Asset Turnover | 1.1 | 9.5 |
What conclusion could T-Z come to based on this comparison?
This exercise is part of the course
Financial Forecasting in Python
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