BUSI 320 Comprehensive Problem 1

Compute each of the following ratios for 2017 and 2018 and indicate whether each ratio was getting "better" or "worse" from 2017 to 2018 and was "good" or "bad" compared to the Industry Avg in 2018 (round all numbers to 2 digits past the decimal place) "Good" or "Bad" compared Getting Better or 2018 GettingIndustry Industry Avg 2017 2018 Worse? Avg Profit Margin Current Ratio Quick Ratio Return on Assets Debt to Assets Receivables turnover Avg. collection period Inventory Turnover** Return on Equity Times Interest Earned 0.11 1.90 0.66 .28 .50 18.00 15.50 9.25 0.55 Assume a 360 day year **Inventory Turnover can be computed 2 different ways. Use the formula listed in the text (the one the text indicates many credit reporting agencies generally use)