A high rate of turnover may indicate too strict credit policies or an inability to extend credit. It is the tradeoff between sales and tying up funds in receivables.

Sales to Working Capital - measures the relationship between sales and the working capital of a business. Too high a ratio may indicate an insufficient amount of working capital. Too low a ratio may indicate unproductive assets.

Sales to Total Assets - measures the ability of a business to use assets productively. This ratio may be indicating conditions of excess capacity, inefficient or obsolete equipment, or temporary changes inn demand.

Bertelsmann appears to be healthy in terms of short-term liquidity. The Acid Test Ratio is normal for companies of this size and the Current Ratio is higher than normal and indicates that the company should have no trouble meeting short-term financial commitments. The capital structure ratios also appear to indicate that...
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