Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Ratio

Industry

2015

2014

2013

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%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Finance And The Macroeconomy

Authors: A. Makin

1st Edition

0333736982, 978-0333736982

More Books

Students also viewed these Finance questions