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I need assistsnce interpreting the ratio analysis table i have completed. Once you have completed the calculations, write a memo to the organization's senior management
I need assistsnce interpreting the ratio analysis table i have completed.
Once you have completed the calculations, write a memo to the organization's senior management and board of directors explaining the financial strengths and weaknesses based upon your analysis. The liquidity, profitability, and capital structure will be assessed and communicated to the leaders of the organization. Your memo should be no more than 250 words in length and should be written in plain English for a lay audience. 2014 2015 Benchmark | Favorable (F), Unfavorable (U), or Approximate (A)? 2015/2014 1. Current ratio 5.50 13.52. 12.00 TEE 2. Days cash on hand 119-35 127.99 15.00 CE 3. Days in AIRPORT 120.26145.00 Collectin recevables 177.7170-2545.00 MF ZUF 4. Operating margin 3.07 2.20 4% MEZUE 5. Return on total assets 127-13 1502 14% IFF 6. Return on net assets 26 14.54 10% EZE 17. Debt to capitalization 153.72 61.21 150% UFZUE 8. Times interest earned 3.36 12.42 4.00 UFZUF 9. Debt service coverage 113 11:28 LUFZUE 10. Fixed asset turnover 2.86 13.28 3.00 LUF/F 11. Salary and 55% 184.0485.21 benefit/NPSR F/F Step by Step Solution
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