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Financial Metrics Year 1 Year 2 Year 3 Liquidity Ratios - Current Ratio 3.5 4.0 4.5 - Quick Ratio 2.8 3.2 3.6 Profitability Ratios -
Financial Metrics Year 1 Year 2 Year 3 Liquidity Ratios
- Current Ratio 3.5 4.0 4.5 - Quick Ratio 2.8 3.2 3.6 Profitability Ratios
- Net Profit Margin 20% 22% 24% - Return on Assets (ROA) 14% 16% 18% Efficiency Ratios
- Inventory Turnover 9 times 10 times 11 times - Accounts Receivable Turnover 16 times 18 times 20 times Trend Analysis Increasing Increasing Increasing Financial Statement Analysis
- Horizontal Analysis
- Vertical Analysis
Requirements:
- Compute liquidity ratios (current ratio, quick ratio) for Company TT for three consecutive years.
- Determine profitability ratios (net profit margin, return on assets) for the same period.
- Analyze efficiency ratios (inventory turnover, accounts receivable turnover) for each year.
- Perform trend analysis for each ratio.
- Perform horizontal analysis of financial statements.
- Conduct vertical analysis of financial statements.
- Ensure all ratios are correctly calculated.
- Provide interpretations for the trends observed.
Financial Metrics | Year 1 | Year 2 | Year 3 |
---|---|---|---|
Liquidity Ratios | |||
- Current Ratio | 3.5 | 4.0 | 4.5 |
- Quick Ratio | 2.8 | 3.2 | 3.6 |
Profitability Ratios | |||
- Net Profit Margin | 20% | 22% | 24% |
- Return on Assets (ROA) | 14% | 16% | 18% |
Efficiency Ratios | |||
- Inventory Turnover | 9 times | 10 times | 11 times |
- Accounts Receivable Turnover | 16 times | 18 times | 20 times |
Trend Analysis | Increasing | Increasing | Increasing |
Financial Statement Analysis | |||
- Horizontal Analysis | |||
- Vertical Analysis |
Requirements:
- Compute liquidity ratios (current ratio, quick ratio) for Company TT for three consecutive years.
- Determine profitability ratios (net profit margin, return on assets) for the same period.
- Analyze efficiency ratios (inventory turnover, accounts receivable turnover) for each year.
- Perform trend analysis for each ratio.
- Perform horizontal analysis of financial statements.
- Conduct vertical analysis of financial statements.
- Ensure all ratios are correctly calculated.
- Provide interpretations for the trends observed.
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