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only need the decision 2. Given the following financial ratios for XYZ Inc. and the Industry averages, state whether you are willing to invest in
only need the decision
2. Given the following financial ratios for XYZ Inc. and the Industry averages, state whether you are willing to invest in the common stock of XYZ or not. Justify your decision by providing three reasons for your decision in the spaces provided below. Be brief and to the point! Ratio Analysis Industry 2016 2015 Avga Liquidity Current ratio 2.33 2.11 2.7 Asset Management Inventory turnover 4.74 4.47 7.0 Days sales outstanding 37.79 32.94 32 Fixed assets turnoverb 9.84 7.89 13.0 Total assets turnoverb 2.31 2.18 2.6 Profitability Return on assets 1.00% 5.76% 9.1% Return on equity 2.22% 11.47% 18.2% Return on invested capital 3.43% 7.84% 15.0% Profit margin 0.43% 2.64% 3.5% Debt Management Debt-to-capital ratio 51.51% 46.14% 45.0% Marker Value P/E ratio 15.42 5.65 6.0 Industry average ratios have been constant for the past 4 years. Based on year-end balance sheet figures. Calculation is based on a 365-day year. Measured as (Short-term debt +Long-term debt)/(Short-term debt +Long-term debt + Common equity) Your decision Step by Step Solution
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