Page 495 - The Case Lab Book

4. Leverage ratios: Debt-to-assets ratio, debt-to-equity ratio, and times-
covered ratio.

5. Shareholder return ratios: Total shareholder returns, price-earnings
ratio, market-to-book value, dividends yield, and market price per

share.

6. Analysis of cash flows is the most instrumental.

Quickly read the case.
2. Answer the following questions:

• Who is the decision maker in this case, and what is their position and
responsibilities?

• What appears to be the issue (of concern, problem, challenge, or
opportunity) and its significance for the organization?
• Why has the issue arisen and why is the decision maker involved now?

• When does the decision maker have to decide, resolve, act or dispose
of the issue? What is the urgency to the situation?

3. Take a look at the Exhibits to see the numbers.
4. Review the case subtitles to see what areas are covered in more

depth.

5. Review the case questions if they have been provided.

Step 1 - Be familiar
a.In general--determine who, what, how, where and when (the critical

facts in a case).
b.In detail--identify the places, persons, activities, and contexts of the
situation.

Step 2 - Recognize the symptoms

a.List all indicators (including stated "problems") that something is not
as expected or as desired

Ensure that symptoms are not assumed to be the problem (symptoms

should lead to identification of the problem).