BUSINESS PROBLEMS Examine the following sets of ratios and identify the business problem the company is most likely experiencing LIQUIDITY T T+1 T+2 Current Ratio 1.450 1426 1.401 Quick Ratio 0.580 0.539 0.498 Inventory. Working Capital 1 286 1.373 1495 Current Debt inventory 1.755 1.711 1.668 PROFITABILITY Gross Profit Net Sales 47.00% 47.00% 47.00% 1.68% 1.68% 1.68% 1.3796 1.35% 1.38% 4.89% 5.14% 4.66% Profit on Sales Not Profit Total Assets Net Profit Net Worth ACTIVITY Sales Receivables Days Sales Outstanding Sales: Inventory Inventory Turnover Days Sales Inventory Sales Net Worth Sales Working Capital Fixed Assets Net Worth Fixed Asset Turnover 9 865 37 000 5.000 9.548 38 226 4897 9.252 39.453 4.798 2.650 2.543 137 736 143.521 2.773 3058 6.330 1.400 2.595 140 628 2.909 6.725 1.413 2.085 7.173 1.450 2.184 1.994 2.650 2.595 140.628 137.736 3.058 2 909 6.725 6.330 2543 143 521 2.773 7.173 1.450 1994 0801 1.400 2.184 0.815 1.413 2085 0 808 Inventory Turnover Days Sales Inventory Sales Not Worth Sales Working Capital Fixed Assets Not Worth Fixed Asset Tumover Total Asset Turnover Cash Velocity Average Payable Period CAPITAL STRUCTURE Total Debt Net Worth Current Debt Net Worth Long Term Debt Net Worth Long Term Debt Working Capital Long Term Debt:Fixed Assets Coverage of Fixed Charges 9.780 41.000 11.944 42 157 15337 43 314 2.461 0.964 2.750 1074 1676 3.470 2 599 1.016 1.582 3.659 1.134 1.497 3.872 1 197 8.400 1.076 8.400 8.400 Expenses increasing faster than revenues Stripping equity using cash Fixed assets financed by cash O Accounts receivables management problems