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1. Given the 2019 ratios of Verizon wireless what do EACH of these ratios indicate about the company specifically? (not just as a whole) 2.
1. Given the 2019 ratios of Verizon wireless what do EACH of these ratios indicate about the company specifically? (not just as a whole)
2. Lastly, at the end, in one paragraph what do these calculations (all together) mean for the companies financial health?
Answers must be broken down into everyday language and not in "financial talk"
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Profit ratios: gross profit margin (gross profit / sales)*100 gross profit 77142000 sales 131868000 gross profit margin 58.50% operating profit margin (operating profit / sales)*100 operating profit 30564000 sales 131868000 operating profit margin 23.18% net profit margin (net income / sales)*100 net income 19265000 sales 131868000 net profit margin 14.61% Liquidity ratios: current ratio current assets / current liabilities current assets 37473000 current liabilities 44868000 current ratio 0.84 quick ratio cash+net receivable / current liabilities cash 2594000 net receivable 25429000 total 28023000 current liabilities 44868000 quick ratio 0.62 cash ratio (cash and cash equivalent + short term investments) / current liabilities cash and cash equivalent 2594000.00 current liabilities 44868000 cash ratio 0.06 Activity ratios: receivable turnover ratio sales / ending receivable sales 131868000 ending receivable 25429000 receivable turnover ratio 5.19 days sales outstanding 365 days / receivable turnover ratio receivable turnover ratio 5.19 days sales outstanding 70.33 inventory turnover ratio cost of goods sold / ending inventory cost of goods sold 54726000 ending inventory 1422000 inventory turnover ratio 38.49 inventory days 365 days / inventory turnover inventory turnover 38.49 inventory days 9.48 Leverage ratios: debt ratio total debt / total assets long-term debt 100712000 total assets 291727000 debt ratio 0.35 debt-to-equity total debt / total equity long-term debt 100712000 total equity 61395000 debt-to-equity 1.64 shareholder return ratio net income / total equity net income 19265000 total equity 61395000 shareholder return ratio 0.31
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