Question
based on the ratios completed above) Industry Lululime Ltd. Ratios 2020 2020 2019 2018 Profit margin 5.81% 5.5% 5.62% 6.25% Return on assets 8.48% 6.34%
based on the ratios completed above)
| Industry | Lululime Ltd. Ratios | |||
| 2020 | 2020 | 2019 | 2018 | |
| Profit margin | 5.81% | 5.5% | 5.62% | 6.25% |
| Return on assets | 8.48% | 6.34% | 7.79% | 9.38% |
| Return on equity | 10.10% | 14.24% | 15.72% | 17.05% |
| Receivable turnover | 9.31 | 6.54x | 7.8x | 10x |
| Average collection period | 35.6 days | 55.8 days | 46.7 days | 36.5 days |
| Inventory turnover | 5.84 | 4x | 3.9x | 3.8x |
| Capital asset turnover | 2.20 | 1.84x | 2.5x | 2.72x |
| Total asset turnover | 1.46 | 1.14x | 2.5x | 1.5x |
| Current ratio | 2.15 | 1.45x | 1.78x | 2.25x |
| Quick ratio | 1.10 | 0.8x | 0.91x | 1 |
| Debt to total Assets | 40.10% | 55.4% | 50.4% | 45% |
| Times interest Earned | 5.26 | 3.17x | 4.75x | 5.67x |
-
What the Ratios Tell Us About the Company in General or its Financial Management?
-
How the Ratios Affect the Decision Whether to Grant Short-term Credit or Long-term Credit, or to Buy Shares in the Company
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