You have been hired as an investment analyst at McNeice Securities, Inc. It is your job to
Question:
You have been hired as an investment analyst at McNeice Securities, Inc. It is your job to recommend investments for your client. You have the following information for two different companies.
Requirement
Write a memo to your client recommending the company you believe to be a more attractive investment. Explain the reasons for your recommendation.
Galapagos, Co. 8 Ratio Bryco, Inc. 13 Accounts receivable turnover.. Inventory turnover .. Gross profit percentage . Net income as a percent of sales Interest coverage ratio . 10 38% 13% 21 40% 11% 26 Return on equity.. Return on assets. 21% 14% 29% 16%
Step by Step Answer:
TO Client FROM Student Name SUBJECT Investment Recommendation I recommend that you invest in Bryco I...View the full answer
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Business questions
-
You have been hired as an investment analyst at Lancaster Securities, Inc. It is your job to recommend investments for your client. You have the following information for two different companies....
-
You have been hired as an investment analyst at Harriet Winston Company. It is your job to recommend investments for your client. The only information you have are the following ratio values for two...
-
You have been hired as an accounting consultant by Watson Company to evaluate its financial reporting policies. Watson is a small corporation with a few stockholders owning stock that is not publicly...
-
The figure shows a rotating wheel with radius 40 cm and a connecting rod AP with length 1.2 m. The pin P slides back and forth along the -axis as the wheel rotates counterclockwise at a rate of 360...
-
In Exercises 1 and 2, find the B-matrix for the transformation x Ax, where B = {b1, b2}. 1. 2. 1 0 4
-
Pay attention to employee attitudes; where possible, hire new staff who exhibit positive affectivity. lop4
-
At what level of production does the business currently break even? LO1
-
Two different plasma etchers in a semiconductor factory have the same mean etch rate . However, machine 1 is newer than machine 2 and consequently has smaller variability in etch rate. We know that...
-
Day Inc., is expected to have an EBIT of $2.03 million next year. Depreciation, the increase in net working capital, and capital spending are expected to be $144,509, $76,472, and $104,617,...
-
Sharon Laynee (age 50) is a part owner (30%) of Petro King, a C-corporation and recently divorced from David (age 50) who is unemployed and entitled to collect $8,000 per month in alimony from Sharon...
-
Comparative financial statement data of Lodgepole Furniture Company follow: Other information follows: a. Market price of a share of common stock was $50.00 at December 31, 2018, and $33.00 at...
-
Net sales, net income, and total assets for Versacheki Construction, Inc., for a four-year period are: Requirements 1. Compute trend percentages for each item for 2015 through 2018. Use 2015 as the...
-
Kemp Machine Works collects its production cost data by job order cost accumulation. For Job 909, the following data are available: Factory overhead is applied at the rate of $80 per machine hour....
-
An eight lane urban freeway (four lanes in each direction) is on rolling terrain and has 11-ft lanes with a 4-ft right-side shoulder. The interchange density is 1.25 per mile. The base free-flow...
-
For the following business events, please indicate the increase (+) or decrease (-) on the following income statement and balance sheet categories. If there is no effect, leave the box blank. If...
-
4. Change the magnet to the original orientation and drag through the coil. a. What happens to the voltage and light bulb as the North Pole moves through the coil? b. What happens to the voltage and...
-
Part 1 of 4 05 points abook Print References Required information Problem 24-2A (Algo) Payback period, accounting rate of return, net present value, and net cash flow calculation LO P1, P2, P3 [The...
-
Keenan Music's CEO has been pondering about the recent proposal of the Specialty Guitar Project. The accountant has done a capital budgeting analysis on the project and outlined the conditions that...
-
What are the phases of a project?
-
The baseball player A hits the ball from a height of 3.36 ft with an initial velocity of 34.8 ft/s. 0.14 seconds after the ball is hit, player B who is standing 15 ft away from home plate begins to...
-
O'Malley Resources, Inc., balance sheet includes three assets: Natural Gas, Oil, and Coal Reserves. Suppose O'Malley Resources, Inc., paid $1,700,000 cash for the right to work a mine with an...
-
The following is selected data for Patina Industries: Requirements 1. Calculate the return on assets (ROA) and the fixed asset turnover ratio for Patina Industries for 2015 and 2016. Round your...
-
On January 1, Titan Trucking purchased a used Kenworth truck at a cost of $48,000. Titan Trucking expects the truck to remain useful for four years (800,000 miles) and to have a residual value of...
-
Kindly Provide brief answers to the following: a) Why do we add floatation costs in the calculations of individual components costs? b) List and briefly explain the qualitative and quantitative...
-
Which of the following statements is correct. On average, the most efficient strategy to create value for existing shareholders is: To buy back shares To offer new products in a growing market To...
-
Which investment should I choose? Bond X: AA Corporate bond, Par=$1,000, Coupon rate=5% (semiannual coupons), 5 years to maturity Bond Y: AA Corporate bond, Par=$5,000, Coupon rate=5.5% (semiannual...
Study smarter with the SolutionInn App