Given below are three ratios calculated for Lantana, Tera, and Bake Companies for 2016 and 2015.
A Which company has the best inventory management? Explain.
B Which company has the best short-term financial health? Explain.
Definitions:
Tangible Capital
Physical assets owned by a person or company that are used in the production or supply of goods and services.
Intangible Capital
Nonmaterial things that contribute to the output of future goods and services.
Production
The method of producing goods and services by merging labor, land, and capital.
Capital Stock
The total amount of physical goods and financial assets that contribute to the production of goods and services in an economy.
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