Question: write a response to For my discussion assignment this week, I will discuss how a company's financial ratios might be used when considering upstream vendors

write a response to For my discussion assignment this week, I will discuss how a company's financial ratios might be used when considering upstream vendors and downstream customers along the supply chain. This could include the current ratio and quick ratio or debt-to-equity ratio. I will also discuss how improving a company's financial performance might impact the supply chain in terms of cooperation and coordination. This could include a strong net income that could be invested in supply chain capabilities such as interfaces and data analytics. If the company is fiscally strong and responsible, this could impact the ability to negotiate favorable net payment terms, early pay discounts, and reduced distribution fees. If a company has a favorable current ratio (current assets/current liabilities) or quick ratio (current assets-inventory/current liabilities), that could indicate to an upstream vendor that the company has the cash on hand to pay invoices promptly (Prokop, 2022). The current ratio test includes inventory, which may not be easily converted into cash, so using the quick ratio is more rigorous to analyze short-run solvency (Fraser & Ormiston, 2024). Vendors typically track a customer's days sales outstanding (DSO), which, if low, indicates the customer pays invoices quickly, but if high, that means it takes longer to collect. Companies that have a strained ratio, say 0.7:1, may be a predictor of a higher DSO customer, as the company may be delaying payment due to l

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