Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Based on the information given for the ratios for 2010 and 2009: a. Has liquidity position improved or worsened? Explain. b. Has the company's ability
Based on the information given for the ratios for 2010 and 2009:
| a. Has liquidity position improved or worsened? Explain. | |||||
| b. Has the company's ability to manage its assets improved or worsened? Explain. | |||||
| c. How has the company's profitability changed during the last year? | |||||
| Ratio Analysis | 2010 | 2009 | Industry Avg | ||
| Liquidity Ratios | |||||
| Current Ratio | 2.44 | 2.52 | 2.58 | ||
| Quick Ratio | 0.58 | 0.65 | 1.53 | ||
| Asset Management Ratios | |||||
| Inventory Turnover | 5.00 | 7.14 | 7.69 | ||
| Days Sales Outstanding | 45.63 | 43.80 | 47.45 | ||
| Fixed Assets Turnover | 1.92 | 2.00 | 2.04 | ||
| Total Assets Turnover | 1.11 | 1.22 | 1.23 | ||
| Debt Management Ratios | |||||
| Debt Ratio | 35.2% | 33.2% | 32.1% | ||
| Times-interest-earned ratio | 12.67 | 13.90 | 15.33 | ||
| EBITDA coverage ratio | 4.37 | 4.09 | 4.18 | ||
| Profitability Ratios | |||||
| Profit Margin | 9.57% | 8.63% | 8.86% | ||
| Basic Earning Power | 19.16% | 18.95% | 19.48% | ||
| Return on Assets | 10.59% | 10.55% | 10.93% | ||
| Return on Equity | 16.35% | 15.80% | 16.10% | ||
| Market Value Ratios | |||||
| Earnings per share | $9.92 | $8.63 | NA | ||
| Price-to-earnings ratio | 9.07 | 11.12 | 10.65 | ||
| Cash flow per share | $14.77 | $13.13 | NA | ||
| Price-to-cash flow ratio | 6.09 | 7.31 | 7.11 | ||
| Book Value per share | $60.68 | $54.61 | NA | ||
| Market-to-book ratio | 1.48 | 1.76 | 1.72 | ||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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