Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please explain thanks!!!! Financial Analysis Below are the ratios for Clark Company for two years compared with the Industry. Clark Company Year 2 3.02% Year

please explain thanks!!!! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Financial Analysis Below are the ratios for Clark Company for two years compared with the Industry. Clark Company Year 2 3.02% Year 1 2.74% Industry Average 2.30% Net profit margin Return on assets 16.50% 12.41% 9.63% Return on equity 31.50% 26.60% 17.31% Current ratio 2.04 2.45 2.11 Quick ratio 0.42 0.58 0.93 A/R turnover 23.8 times 25.2 times 42.2 times # days A/R 15.3 days 14.5 days 8.6 days Inventory turnover 3.5 times 3.8 times 5.1 times # days Inventory 104 days 96 days 72 days nes interest earned 7.1 times 6.5 times 4.7 times ice/Earnings ratio 16.5 14.9 11.6 vidend yield 3.10% 2.70% 1.40% .) Discuss the profitability of Clark Company compared with the prior year and the industry average. Refer to the specific ratios you used in your evaluation of profitability. Discuss Clark's liquidity compared with the prior year and the industry average. Refer to the specific ratios you used in your evaluation of liquidity. ) Discuss Clark's management efficiency compared to the prior year and the industry. Refer to the specific ratios you used in your evaluation of efficiency. Discuss Clark's solvency compared to the prior year and the industry. Refer to the specific ratios you used in making your evaluation. Would you invest in this company? Why or why not? Be specific

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_2

Step: 3

blur-text-image_3

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

ISO 9001 2015 Audit Procedures

Authors: Ray Tricker

4th Edition

1138025895, 978-1138025899

More Books

Students also viewed these Accounting questions

Question

Why is springback rather minimal in high-energy-rate forming?

Answered: 1 week ago

Question

4. Identify cultural variations in communication style.

Answered: 1 week ago