Question

Given the challenge area for "Exercise 3", from the corresponding table below, identify the exact source of the problems. What is it? (Note: this is the 3rd exercise in the table. I forgot to change the number from 1 to 3) (One sentence is enough for your answer.)

Answer 1

Solution - In Example 3 challenge area is Sales / Asset.

The Exact source of Problem is Fixed Asset Turnover. It is reducing from 1.57 to 1.42 to 0.99. The company need to focus on its sales and assets. Either sale higher with existing asset or lower the asset base for the sales.