Question
Choose a company and answer the following questions: 1. using the ratios given in the text, prepare an analysis of the company for the past
Choose a company and answer the following questions:
1. using the ratios given in the text, prepare an analysis of the company for the past two years (2019 - 2020) with respect to profitability, liquidity, activity, solvency, and equity.
Ratios: 2020 2019 industry average
current ratio 1.6:1 1.7:1 2:1
quick ratio 0.75:1 0.80:1 1:1
accounts receivable turnover 8 times 7.75 times 12 times
inventory turnover 4.0 times 3.8 times 7.0 times
2. even though the ratios calculated in part 1 do not span a long period of time, discuss the company's financial health. would you invest in it? why or why not?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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