Capstone Experience (Business Metrics) 2 Assignment

coping stone Experience (Business Metrics) 2 - Assignment ExampleCurrent ratio helps in calculating the firms ability to pay its short-term liabilities. It is calculated by dividing the current liabilities with the current assets (Mowen, Hansen, & Heitger, 2011).Using the on fourth dimension delivery indicator to predict stock-out helps in measuring the operational efficiency of the business unit (Bidgoli, 2010). This follows from the blood of information that ensures that the unit take holds sufficient stock for its operations. The gross operating profit per visible(prenominal) room measures the battle of the unit. This follows from the use of the rates to give measures that can maximize profitability of the unit. The current ratio seeks to measure the decision-making capacity. It gives acumen into the prevailing financial situation, thus prompting appropriate actions to safeguard financial stability.The business unit seeks to maintain good relations with creditors. Therefore, the current ratio helps the business unit to preserve the trust of the organizations creditors, by showing when there is need to negotiate with them on payment. The gross operating profit per available room assists the business in seeking a competitive edge in its operations. More to these, the stock-out soothsayer aligns to the units strategy of promoting customer satisfaction (Stair & Reynolds,