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Hi, I am struggling with question three! the last four in the ratios which are the Earnings growth rate, PEG, Book/ Value, and Market book
Hi, I am struggling with question three! the last four in the ratios which are the Earnings growth rate, PEG, Book/ Value, and Market book value we cannot figure out those formulas. When you solve in the table can you please list the formulas and how you solved it? I would like both the solutions and the formulas please
Cranston 2009 Industry Averages 2010 2010 2008 Liquidity 2.10 1.28 1.48 1.10 0.82 0.87 0.39 0.25 0.37 0.25 0.51 0.43 13.04 20.84 19.00 22.35 34.83 35.00 Current ratio Quick ratio or acid ratio test Cash ratio Financial leverage ratios Debt ratio Times Interest earned Cash coverage Asset management Inventory turnover Days' sales in inventory Receivables turnover Days' sales in receivables Total asset turnover Profitability ratios Profit margin Return on total assets Return on equity 4.24 4.78 5.20 06.04 76.30 70.19 4.99 8.63 6.81 42.32 53.60 73.18 1.03 1.10 1.80 6.50% 7.20% 8.60% 6.67% 7.89% 15.48% 13.61% 13.78% 20.59% Market $ 1.46 $ 1.39 Earnings per share (EPS) Price/earnings (PE) Earnings growth rate Not meaningful 21.00 26.11 23.04 4.79% 1745% 18.00% PEG 5.45 1.32 Book value $10.69 $10.08 1.17 Not meaningful 4.26 Market/book 3.55 3.18 3. Use the common-size statements and the ratio analysis that you have prepared to comment on Cranston's: a. liquidity b. solvency c. asset management d. profitability e market performance Indicate whether the ratios are improving or deteriorating over the three-year period and whether they are better or worse than the 2010 industry averages. 4. Express Cranston's ROE in terms of the DuPont identity. Which ratios are contributing to Cranston's below-average ROE? 5. Based on your analyses in Questions through 4. why do you think Cranston's recent stock perfor- ScartiebtebyapamScanner Cranston 2009 Industry Averages 2010 2010 2008 Liquidity 2.10 1.28 1.48 1.10 0.82 0.87 0.39 0.25 0.37 0.25 0.51 0.43 13.04 20.84 19.00 22.35 34.83 35.00 Current ratio Quick ratio or acid ratio test Cash ratio Financial leverage ratios Debt ratio Times Interest earned Cash coverage Asset management Inventory turnover Days' sales in inventory Receivables turnover Days' sales in receivables Total asset turnover Profitability ratios Profit margin Return on total assets Return on equity 4.24 4.78 5.20 06.04 76.30 70.19 4.99 8.63 6.81 42.32 53.60 73.18 1.03 1.10 1.80 6.50% 7.20% 8.60% 6.67% 7.89% 15.48% 13.61% 13.78% 20.59% Market $ 1.46 $ 1.39 Earnings per share (EPS) Price/earnings (PE) Earnings growth rate Not meaningful 21.00 26.11 23.04 4.79% 1745% 18.00% PEG 5.45 1.32 Book value $10.69 $10.08 1.17 Not meaningful 4.26 Market/book 3.55 3.18 3. Use the common-size statements and the ratio analysis that you have prepared to comment on Cranston's: a. liquidity b. solvency c. asset management d. profitability e market performance Indicate whether the ratios are improving or deteriorating over the three-year period and whether they are better or worse than the 2010 industry averages. 4. Express Cranston's ROE in terms of the DuPont identity. Which ratios are contributing to Cranston's below-average ROE? 5. Based on your analyses in Questions through 4. why do you think Cranston's recent stock perfor- ScartiebtebyapamScannerStep by Step Solution
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