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Bridgerton is a manufacturer of electronic components and accessories with total assets of $20,000,000. Selected financial ratios for Bridgerton and the industry averages for firms
Bridgerton is a manufacturer of electronic components and accessories with total assets of $20,000,000. Selected financial ratios for Bridgerton and the industry averages for firms of similar size are presented below. 2018 2019 2020 Industry Avg. Current ratio 2.09 2.27 2.51 2.24 Quick ratio 1.15 1.12 1.19 1.22 2.40 2.18 2.02 3.50 5.17 5.36 5.69 3.86 Inventory turnover Profit margin on sales Return on common stockholders equity 0.14 0.15 0.17 0.11 Debt to assets 0.50 0.52 0.59 0.43 Whistledown Bank is processing Bridgerton's application for a new 5-year term note. Whistledown has been Bridgerton's banker for several years but must reevaluate the company's financial position for each major transaction. Which two ratios would be most helpful in making this decision and, based on the very limited information provided, what would your recommendation be
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