Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Instructions: For each of the ratios, provide a professional opinion on whether the trend is positive for the company and also compare the performance with
| |||||||||||||||||||||||||
| 2006 | 2007 | 2008 | |||||||||||||||||||||||
| Total Margin | 7.5% | 7.6% | 7.9% | ||||||||||||||||||||||
| Industry Average | 7.2% | 6.5% | 7.1% | ||||||||||||||||||||||
| Return on Assets | 5.2% | 5.5% | 5.7% | ||||||||||||||||||||||
| Industry Average | 5.0% | 4.8% | 5.2% | ||||||||||||||||||||||
| Return on Equity | 9.0% | 8.8% | 8.7% | ||||||||||||||||||||||
| Industry Average | 8.4% | 8.7% | 8.7% | ||||||||||||||||||||||
| Current Ratio | 2.3 | 2.1 | 2.1 | ||||||||||||||||||||||
| Industry Average | 1.9 | 2.0 | 1.9 | ||||||||||||||||||||||
| Days Cash on Hand | 24 days | 28 days | 30 days | ||||||||||||||||||||||
| Industry Average | 20 days | 22 days | 24 days | ||||||||||||||||||||||
| Average Payment Period | 32 days | 34 days | 33 days | ||||||||||||||||||||||
| Industry Average | 35 days | 35 days | 34 days | ||||||||||||||||||||||
| Debt Ratio | 35.0% | 38.0% | 40.0% | ||||||||||||||||||||||
| Industry Average | 40.0% | 42.0% | 42.0% | ||||||||||||||||||||||
| Debt-to-Equity Ratio | 40.0% | 44.0% | 44.0% | ||||||||||||||||||||||
| Industry Average | 43.0% | 42.0% | 42.0% | ||||||||||||||||||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Sport Funding And Finance
Authors: Bob Stewart
2nd Edition
041583984X, 978-0415839846
