Magna International Inc. is Canada's top manufacturer of auto parts and systems. Its top competitor is Dana

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Magna International Inc. is Canada's top manufacturer of auto parts and systems. Its top competitor is Dana Holdings Inc. The following information is available for these two competitors and their industry, for a recent year:

Magna International Inc. is Canada's top manufacturer of auto parts

Instructions
(a) Comment on the liquidity of the two companies in comparison with each other, and the industry.
(b) Comment on the profitability of the two companies in comparison with each other, and the industry.
(c) It would appear from the above ratios that the inventory turnover ratio may have an impact on the current ratio. Please explain why.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally.    Inventory Turnover Ratio FormulaWhere,...
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Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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