Question
compare and contrast these two companies and recommend and with which to form a merger analyse the following ratios for these two companies Fashion Forward
compare and contrast these two companies and recommend and with which to form a merger
analyse the following ratios for these two companies
| Fashion Forward | Dreams Design | ||
| Profitability Measures | |||
| 1 | Profit margin | 5.46% | 3.9% |
| 2 | Return on assets | 4.9% | 4.8% |
| Short-Term Liquidity Measures | |||
| 3 | Credit Ratios | 1.1 of 1 | 1.4 of 1 |
| 4 | Quick Ratio | 0.98 of 1 | 1.01 of 1 |
| 5 | AR TurnOver Ratio | 14.3 times | 20.6times |
| 6 | Average Collection Period | 26 days | 18 days |
| 7 | Inventory Turn over | 12.9 times | 15.7 times |
| 8 | Average Sales | 28 Days | 23 Days |
| Long-Term Solvency Measures | |||
| 9 | Debt to Equity Ratio | 0.95 to 1 | 0.77 to 1 |
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
