Question
Can you please answer this within an hour and a half? thank you!! A manufacturing company's financials reveal the following ratios: Ratio/Calculation 20X4 20X3 20X2
Can you please answer this within an hour and a half? thank you!!
A manufacturing company's financials reveal the following ratios:
Ratio/Calculation 20X4 20X3 20X2 20X1 20X0 Industry Ave.
Day's Sales In Receivables (days) 18 25 31 30 30 29
Day's Sales In Inventory (days) 92 89 78 77 78 60
Current Ratio 2.9 2.9 2.4 2.5 2.5 2.2
Acid Test (Quick) Ratio 1.5 1.6 1.8 1.8 1.8 1.9
Debt Ratio (Tot Liab/Tot Assets) 40% 42% 46% 45% 45% 52%
Times Interest Earned (x's per year) 7.1 7.1 7.1 6.9 6.9 7.1
Fixed Charge Coverage (x's per year) 5.4 5.8 5.9 6.9 6.9 6.5
Gross Profit Margin 42% 41% 42% 43% 42% 40%
Operating Profit Margin 17% 18% 18% 21% 21% 20%
Net Profit Margin 5% 5% 6% 8% 8% 8%
Total Asset Turnover (x's per year) 3.4 3.5 3.4 3.4 3.3 3.5
Financial Leverage Ratio 1.7 1.7 ??? 1.8 1.8 2.1
Based on the financial information presented in the table above, address the following questions/inquiries. KEEP YOUR ANSWERS SHORT AND SWEET - there is not reason to write a novelette for your answers.
1) Assess the debt-paying ability of this company, being sure to note the TIE and the FCC and speculate on what might be occurring with regard to the FCC beginning in 20X2 (15 points)
2) Comment on the overall liquidity of this company and also address how the movement of the DSR and DSI in 20X2 through 20X4 might be related. (15 points)
3) Calculate the Financial Leverage Ratio (FLR) for this company for the year 20X2. Show your work. (5 points)
4) Calculate the ROA and ROE for this company for 20X0. Show your work. (10 points)
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