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a. Calculate TWO ratios from each of the five categories and briefly discuss what the ratios represent. It is important to also compare the numbers
a. Calculate TWO ratios from each of the five categories and briefly discuss what the ratios represent. It is important to also compare the numbers to the company's historic and to industry average. Industry averages are posted below. Overall how is the company doine? 1. Liquidity - calculate and discuss the current and quick ratios and compare them to the industry. 2. Asset Management - calculate inventory turnover and Average Collection period ratios and compare them to the industry 3. Debt - calculate the total debt and times interest earned and compare it to the industry 4. Profitability - Calculate and discuss the ROA, ROE, and Profit Margin and compare them to the industry. 5. Market Value - calculate and discuss the Market to Book Value and Price Earnings ratio and compare them to the industry. b. What is one pro and one con of ratio analysis for company management? To a shareholder? Be specific
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