John Chan is interested in assessing both the efficiency and liquidity of Spherion PLC. Chan has collected the following data for Spherion:
|
2005 |
2004 |
2003 |
|
|
Day of inventory on hand |
32 |
34 |
40 |
|
Days of sales outstanding |
28 |
25 |
23 |
|
Numbers of days of paybles |
40 |
35 |
35 |
Based on this data, what is Chan least likely to conclude?
a. Inventory management has contributed to improved liquidity.
b. Management of payables has contributed to improved liquidity.
c. Management of receivables has contributed to improved liquidity.