Barnes plans to use the ratios shown below as the starting point for discussions with SKIs operating

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Barnes plans to use the ratios shown below as the starting point for discussions with SKI’s operating executives. He wants everyone to think about the pros and cons of changing each type of current asset and how changes would interact to affect profits and EVA. Based on the table 22-1 data, does SKI seem to be following a relaxed, moderate, or restricted working capital policy?

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Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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