Question
Compute each of the following ratios for 2016 and 2017 and indicate whether each ratio was getting better or worse from 2016 to 2017 and
Compute each of the following ratios for 2016 and 2017 and indicate whether each ratio was getting "better" or "worse" from 2016 to 2017 and was "good" or "bad" compared to the Industry Avg for 2016. (round all numbers to 2 digits past the decimal place)
Type your answers in the table and submit this document.
Ratios | 2016 | 2017 | Enter Better or Worse | Industry Avg | Enter "Good" or "Bad" compared to Industry Avg | ||||
Profit Margin | 1 | 11 | 21 | 0.11 | 31 | ||||
Current Ratio | 2 | 12 | 22 | 1.90 | 32 | ||||
Quick Ratio | 3 | 13 | 23 | 1.12 | 33 | ||||
Return on Assets | 4 | 14 | 24 | .26 | 34 | ||||
Debt to Assets | 5 | 15 | 25 | .55 | 35 | ||||
Receivables turnover | 6 | 16 | 26 | 18.00 | 36 | ||||
Avg. collection period* | 7 | 17 | 27 | 21.20 | 37 | ||||
Inventory Turnover** | 8 | 18 | 28 | 8.25 | 38 | ||||
Return on Equity | 9 | 19 | 29 | 0.25 | 39 | ||||
Times Interest Earned | 10 | 20 | 30 | 8.15 | 40 |
*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)
|
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