Longer question but please answer all parts. The information needed was provided in the attachments
completo ratio analysis, recognizing significant differences Home Health, Inc., has come to Jane Ross for a yearly financial checkup. As a first step, Jane has prepared a complete set of ratios for fiscal years 2018 and 2019 Herm to look for significant changes in the company's situation from one year to the next To focus on the degree of change, calculate the year to your proportional change by subtracting the year 2018 ratio from the year 2019 ratio, then dividing the difference by the year 2018 ratio. Multiply the result by 100. Preserve regative sign. There is the percentage change in the ratio from 2018 to 2019. Calculate the proportional change for the artis shown here. For any ratio that shows a year to-year difference of 10% or more state whether the difference is in the company's favor or not. For the most significant changes 26% or more), look at the other ratios and to at least one other change that may have contributed to the change in the ratio that you are discussing To focus on the degree of change, calculate the year to-year proportionat change for the ratios shown here a. To focus on the degree of change, calculate the year-to-year proportional change for the ratios shown here. Liquidity Ratios Current ratio Proportional Difference Proportional Difference Liquidity Ratios Quick ratio Proportional Difference Activity Ratios Inventory turnover Proportional Difference Activity Ratios Average collection period Proportional Difference Activity Ratios Total asset turnover Proportional Difference Debt Ratio Debt ratio Proportional Difference Debt Ratio Times interest earned ratio Proportional Difference Profitability Ratios Gross profit margin Profitability Ratios Operating profit margin Proportional Difference Proportional Difference Profitability Ratios Net profit margin Proportional Difference Proportional Difference Profitability Ratios Return on total assets Profitability Ratios Return on common equity Market Ratios Price/earnings ratio Proportional Difference Proportional Difference Market Ratios Market/book ratio b. For any ratio that shows a year-to-year difference of 10% or more, state whether the difference is in the company's favor or not. Indicate whether the proportional difference is in the company's favor or not. (Select from the drop-down menus.) Liquidity Ratios Proportional Difference Quick ratio - 12.00% Proportional Difference (Select from the drop-down menus.) Activity Ratios Inventory turnover Average collection period Total asset turnover (Select from the drop-down menu.) - 19.53% -26.29% 42.86% Proportional Difference Debt Ratio Debt ratio 37.78% Proportional Difference (Select from the drop-down menus.) Profitability Ratios Operating profit margin Return on total assets Return on common equity 14.29% 39.68% 101.90% (Select from the drop-down menus.) Market Ratios Market/book ratio Proportional Difference -10.71% c. For the most significant changes (25% or more). look at the other ratios and cite at least one other change that may have contributed to the change in the ratio that you are discussing The average collection period decreased by -26.29%. This could be because: (Select the best answer below.) the accounts receivable decreased due to lower sales. there has been a change in credit terms there has been quicker collection all of the above. The total asset tumover has increased by 42.86%. This could be because: (Select the best answer below.) sales have increased. total assets have decreased C neither of the above. in the And The debt ratio has increased by 37.78%. This could be because: (Select the best answer below.) A. there is a decrease in assets. B. there is an increase in debt. neither of the above. D. both A and B. The return on total assets has increased by 39.66%. This could be because: (Select the best answer below.) A. the earnings available for common stockholders has increased. OB, total assets have decreased XC current assets have decreased. *. all of the above The return on common equity has increased by 101.90%. This could be because: (Select the best answer below.) A common stock equity has decreased. B. the earnings available for common stockholders has increased. C. retained earnings have decreased. D. all of the above. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) 2019 Home Health, Inc. Financial Ratios Ratio 2018 Current ratio 3.25 Quick ratio 2.50 Inventory turnover 12.80 Average collection period 42.6 days Total asset turnover 1.40 Debt ratio 0.45 Times interest earned ratio 4.00 Gross profit margin 68% Operating profit margin 14% Net profit margin 8.3% Return on total assets 11.6% Return on common equity 21.1% Pricelearnings ratio 10.7 Market/book ratio 1.40 3.00 2.20 10.30 31.4 days 2.00 0.62 3.85 65% 16% 8.1% 16.2% 42.6% 9.8 1.25 completo ratio analysis, recognizing significant differences Home Health, Inc., has come to Jane Ross for a yearly financial checkup. As a first step, Jane has prepared a complete set of ratios for fiscal years 2018 and 2019 Herm to look for significant changes in the company's situation from one year to the next To focus on the degree of change, calculate the year to your proportional change by subtracting the year 2018 ratio from the year 2019 ratio, then dividing the difference by the year 2018 ratio. Multiply the result by 100. Preserve regative sign. There is the percentage change in the ratio from 2018 to 2019. Calculate the proportional change for the artis shown here. For any ratio that shows a year to-year difference of 10% or more state whether the difference is in the company's favor or not. For the most significant changes 26% or more), look at the other ratios and to at least one other change that may have contributed to the change in the ratio that you are discussing To focus on the degree of change, calculate the year to-year proportionat change for the ratios shown here a. To focus on the degree of change, calculate the year-to-year proportional change for the ratios shown here. Liquidity Ratios Current ratio Proportional Difference Proportional Difference Liquidity Ratios Quick ratio Proportional Difference Activity Ratios Inventory turnover Proportional Difference Activity Ratios Average collection period Proportional Difference Activity Ratios Total asset turnover Proportional Difference Debt Ratio Debt ratio Proportional Difference Debt Ratio Times interest earned ratio Proportional Difference Profitability Ratios Gross profit margin Profitability Ratios Operating profit margin Proportional Difference Proportional Difference Profitability Ratios Net profit margin Proportional Difference Proportional Difference Profitability Ratios Return on total assets Profitability Ratios Return on common equity Market Ratios Price/earnings ratio Proportional Difference Proportional Difference Market Ratios Market/book ratio b. For any ratio that shows a year-to-year difference of 10% or more, state whether the difference is in the company's favor or not. Indicate whether the proportional difference is in the company's favor or not. (Select from the drop-down menus.) Liquidity Ratios Proportional Difference Quick ratio - 12.00% Proportional Difference (Select from the drop-down menus.) Activity Ratios Inventory turnover Average collection period Total asset turnover (Select from the drop-down menu.) - 19.53% -26.29% 42.86% Proportional Difference Debt Ratio Debt ratio 37.78% Proportional Difference (Select from the drop-down menus.) Profitability Ratios Operating profit margin Return on total assets Return on common equity 14.29% 39.68% 101.90% (Select from the drop-down menus.) Market Ratios Market/book ratio Proportional Difference -10.71% c. For the most significant changes (25% or more). look at the other ratios and cite at least one other change that may have contributed to the change in the ratio that you are discussing The average collection period decreased by -26.29%. This could be because: (Select the best answer below.) the accounts receivable decreased due to lower sales. there has been a change in credit terms there has been quicker collection all of the above. The total asset tumover has increased by 42.86%. This could be because: (Select the best answer below.) sales have increased. total assets have decreased C neither of the above. in the And The debt ratio has increased by 37.78%. This could be because: (Select the best answer below.) A. there is a decrease in assets. B. there is an increase in debt. neither of the above. D. both A and B. The return on total assets has increased by 39.66%. This could be because: (Select the best answer below.) A. the earnings available for common stockholders has increased. OB, total assets have decreased XC current assets have decreased. *. all of the above The return on common equity has increased by 101.90%. This could be because: (Select the best answer below.) A common stock equity has decreased. B. the earnings available for common stockholders has increased. C. retained earnings have decreased. D. all of the above. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) 2019 Home Health, Inc. Financial Ratios Ratio 2018 Current ratio 3.25 Quick ratio 2.50 Inventory turnover 12.80 Average collection period 42.6 days Total asset turnover 1.40 Debt ratio 0.45 Times interest earned ratio 4.00 Gross profit margin 68% Operating profit margin 14% Net profit margin 8.3% Return on total assets 11.6% Return on common equity 21.1% Pricelearnings ratio 10.7 Market/book ratio 1.40 3.00 2.20 10.30 31.4 days 2.00 0.62 3.85 65% 16% 8.1% 16.2% 42.6% 9.8 1.25
