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Merkel Company has been in business for a number of years. Merkel has the following financial ratios: Return on equity (ROE) 85% Net profit
Merkel Company has been in business for a number of years. Merkel has the following financial ratios: Return on equity (ROE) 85% Net profit margin 19% Total asset turnover 4.9 Earnings quality 0.5 Debt-to-equity ratio 4.2 Question 12 25 pt Prepare an analysis of Merkel Company. Discuss and interpret the financial ratios above. What are the strengths of Merkel? What are the weaknesses? Are there any troubling signs?
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The strengths of the Merkel Company are its high profitability ratios such as return on equity and n...
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
