FIN 200 Entire class version 4 Weeks 1 9
in Economics by neel
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Like investors, upper-level management will look at and analyze all ratios but with different degrees of focus. The marketing manager will pay closer attention to the company's asset utilization ratio, mainly the inventory turnover. This will help in determining if the company needs to come up with a new strategic plan for moving inventory at a faster rate. The production manager and human resource manager will focus more closely on the company's profitability ratio. The production manager will mainly be interested in the company's return on assets, with the human resource manager interested in return on company sales; these figures inform the managers as to whether sales goals are being met on inventory turnover.
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