Question
Financial ratio data is listed below for Gallery of Dreams. Construct a list of strengths and weaknesses for the firm after analyzing the ratios. Gallery
Financial ratio data is listed below for Gallery of Dreams. Construct a list of strengths and weaknesses for the firm after analyzing the ratios.
Gallery of Dreams Ratios | ||||
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Ratio | Industry | 2015 | 2014 | 2013 |
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Current | 2.50x | 4.48x | 4.06x | 3.48x |
Quick | 0.80x | 1.47x | 1.18x | 0.96x |
Average collection period | 11 days | 16 days | 15 days | 9 days |
Inventory turnover | 2.30x | 1.19x | 1.24x | 1.37x |
Days payable outstanding | 15 days | 11 days | 12 days | 8 days |
Fixed asset turnover | 17.50x | 9.74x | 9.09x | 8.85x |
Total asset turnover | 2.80x | 1.50x | 1.67x | 1.82x |
Debt ratio | 62.00% | 29.47% | 34.04% | 39.17% |
Long term debt to total capitalization |
25.53% |
14.09% |
18.91% |
22.33% |
Times interest earned | 9.93x | 22.02x | 19.00x | 14.23x |
Fixed charge coverage | 8.69x | 4.59x | 4.47x | 4.25x |
Gross profit margin | 31.10% | 59.21% | 59.39% | 58.52% |
Operating profit margin | 8.06% | 22.05% | 21.86% | 20.52% |
Net profit margin | 4.32% | 11.89% | 11.00% | 10.97% |
Return on investment | 9.21% | 17.97% | 18.28% | 18.35% |
Return on equity | 11.34% | 24.14% | 27.51% | 29.88% |
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