A. One asset management ratio, the inventory turnover ratio, is defined as revenues di- vided by inventories. Would this ratio be more important for a medical
device manu- facturer or a hospital management company?
B.Assume that Old Gatorland and Badger Manor, two operators of nursing homes, have fiscal years that end at different times:say, one in June and one in
December. Would this fact cause any problems when comparing ratios between the two businesses?
C. Assume a large physician group practice has a low return on equity (ROE). How could Du Pont analysis be used to identify
possible actions to help boost profitability?
