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Analyze the provided financial ratios and answer the questions: Ratio Value Current Ratio 2.5 Quick Ratio 1.5 Debt to Equity Ratio 0.6 Return on Assets
- Analyze the provided financial ratios and answer the questions:
Ratio | Value |
Current Ratio | 2.5 |
Quick Ratio | 1.5 |
Debt to Equity Ratio | 0.6 |
Return on Assets (ROA) | 8% |
Return on Equity (ROE) | 12% |
- a. What does the Current Ratio indicate about the company’s liquidity? b. Compare the Quick Ratio to the Current Ratio. What does this imply? c. Evaluate the financial leverage of the company using the Debt to Equity Ratio. d. Assess the company’s profitability using ROA and ROE.
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
