How having a high dio and dso will impact liquidity ratios


Problem

I. Use the CNBC website and type in ticker symbol XOM into the search bar. This will pull up Exxon. Go to financials and calculate DIO, DSO, and DPO to get the CCC and then calculate Net Margin x Asset Turnover X Equity Multiplier to calculate ROE. You must show your work or no credit will be given.

II. Explain how having a low DIO will most probably impact the components of DuPont and the overall ROE. Be specific

III. Explain how having a high DIO and DSO will impact liquidity ratios.

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Finance Basics: How having a high dio and dso will impact liquidity ratios
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