Question
. Based on changes over time and a comparison with industry norms, evaluate the firm's strengths and weaknesses in terms of its financial position. I.
. Based on changes over time and a comparison with industry norms, evaluate the firm's strengths and weaknesses in terms of its financial position.
I. Short-term solvency, or liquidity, ratios
Current ratio
0.75
Quick ratio
0.38
Cash ratio
0.12
II. Long-term solvency, or financial leverage, ratios
Total debt ratio
0.80
Debt-equity ratio
4.11
Equity multiplier
5.11
Times interest earned ratio
8.35
Cash coverage ratio
29.28
III. Asset utilization, or turnover, ratios
Inventory turnover
5.51
Days' sales in inventory
66.22
Receivable turnover
12.51
Days' sales in receivables
29.18
Total asset turnover
1.02
Capital intensity
0.98
IV. Profitability ratios
Proof margin
7.07%
Return on assets
7.18%
Return on equity
36.73%
ROE
36.73%
V. Market values ratios
Price earning ratio
Market to book ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started