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Financial Statement Analysis for Chaos Corp. Ratio Ratios for Chaos Inc. Industry Average Profit margin 2 Times interest earned 6.9% 2.81 6.5% 7.3x 3 Avg.
Financial Statement Analysis for Chaos Corp. Ratio Ratios for Chaos Inc. Industry Average Profit margin 2 Times interest earned 6.9% 2.81 6.5% 7.3x 3 Avg. collection period 113.8 42.6 days 4.1 6.3x 4 Inventory turnover 5 Quick Ratio 1.3 1.1 6 Total asset turnover 0.9 1.7x (Note: This content is protected and may not be shared, uploaded, or distributed) Based on the Financial and Industry Ratios above: i. For each Ratio indicate if Chaos Corp's Ratio is better or worse than the industry average. ii. Provide an explanation of the importance of each ratio in analyzing a company's performance. ( For example: Higher ratio better, reflects efficient use of cash) iii. Based on the ratios above would you provide them additional capital? Explain
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