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6) Do the ratios indicate that investors are expected to have a high or low opinion of the company?Explain. Year 2 Year 1 Year 0
6) Do the ratios indicate that investors are expected to have a high or low opinion of the company?Explain.
Year 2 | Year 1 | Year 0 | Industry | |
Current Ratio | 1,86x | 1,1x | 2,3x | 2,7x |
Quick Ratio | 0,67x | 0,4x | 0,8x | 1,0x |
Inventory turnover | 4,10x | 4,5x | 4,8x | 6,1x |
DSO | 44,9 | 39 | 36,8 | 32 |
Fixed asset turnover | 8,61 | 6.2x | 10.0x | 7.0x |
Total asset turnover | 2,01 | 2.0x | 2.3x | 2.5x |
Debt ratio | 55,61% | 95,40% | 54,80% | 40,00% |
TIE | 6,3x | -3.9x | 3,3x | 6,2x |
EBITDA coverage | 5,5x | -2,5x | 2,6x | 8,0x |
Profit margin | 3,60% | -8,9% | 2,60% | 3,60% |
Basic earning power | 14,40% | -24,1% | 14,20% | 17,80% |
ROA | 7,25% | -18.1% | 6,00% | 9,00% |
ROE | 16,34% | -391,4% | 13,30% | 18,00% |
Price/Earnings | 12,01x | -0,4% | 9,7x | 14,2x |
Price/Cash Flow | 8,2x | 0,6x | 8,0x | 7,6x |
Market / Book | 1,96x | 1,7x | 1,3x | 2,9x |
Book value per share | $6,21 | $1,33 | $6,64 | N/A |
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