Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kindly advise on the key assumptions that can be made for a company with financial ratios as these below; Liquidity Ratios: - Current ratio for

Kindly advise on the key assumptions that can be made for a company with financial ratios as these below;

Liquidity Ratios: -

Current ratio for 2018 and 2019 are 15.90 and 14.25 respectively.

Quick ratio for 2018 and 2019 are 3.40 and 8.0 respectively.

Leverage Ratios: -

Debt-to-asset ratio was 6.30% for 2018 and 7.10% for 2019.

Debt-to-equity ratio was 6.70% for 2018 and 6.30 % for 2019.

Profitability Ratios: -

Return on Asset (ROA) was -0.63% for 2018 and 5.92% for 2019.

Return on Equity (ROE) was -0.67% for 2018 and 6.29% in 2019.

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

Financial Accounting

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

10th edition

978-1119298229, 1119298229, 978-1119305828, 1119305829, 978-1119305736

More Books

Students also viewed these Economics questions

Question

What reward will you give yourself when you achieve this?

Answered: 1 week ago