Q 1. Based on your calculations of current ratio and total-asset turnover ratio, what would you recommend we do to improve our asset management?
Q 2. We would like to improve the use of our working capital. Based on your ratio calculations. What are your specific recommendations? Please note that the current liability for deferred revenue consists primarily of amounts owed to customers in Loyalty programs. This will limit what can be done to increase working capital. See below: Debtors and Creditor's policies can be improved. Better management in the working capital is required and if necessity arises, some changes in financial policies can also be brought in.
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