PQOBLEM 16-15 Comprehenalve Ratio Analysis (G) Lo16-2, (3) Lo16-3, Gitons-4, 3 1016-5, (1) Lot6-6 Required: 1. You decise firs to assess the compaig's performance in terms of debt management and profitabtity, Compute the following for both this year and last year: a. The times interest earned ratio. b. The debt-toequity ratio. e. The gross margin perceatape. d. The retam on fotal asers. (Total assets at the beginning of lnst year were $12,960.000. e. The return on equity: (Stocthotders' equily at the bezianing of last jear totaled 59.048 .000 . There has been no change is common sock over the last two years) f. Is the compar's financial ieverage positive or negative? Explait, 2. You decide next to assess the compary's rock market peiformance. Asume that Lydex's itoek price at the end of this year is $72 per stare and thar at the end of last year it was \$40. For both this zear and last year, compute: a. The earnings per share. b. The dividend yield ratio. c. The dividend psyout ratio. d. The priceearnings ratio. Hox do itveston regaid Lydex Consany as compared to other companies in the industn?? Explain. e. The book value per share of common stock. Does the difference between martet value per share and book value per thare sugeest that the stock at its curreat price is a bargain? Explain. 3. You decide, finatly, to assess the company's liquidity and asset management. For both this year and last yeat, compute: a. Working capital. b. The current ratio. c. The acidest ratio. d. The average collection period. (The aecounts receivable at the beginning of last jear roraled \$1.560.000.) e. The average sale period. (The inventory at the beginning of last year totaled $1.920.000.) f. The operating cycle. g. The total asset turnover. (The total assers at the beginning of last year totaled $12,960,000.) 4. Prepare a brief memo that summarizes how Lydex is performing relative to its comperitors. To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: PQOBLEM 16-15 Comprehenalve Ratio Analysis (G) Lo16-2, (3) Lo16-3, Gitons-4, 3 1016-5, (1) Lot6-6 Required: 1. You decise firs to assess the compaig's performance in terms of debt management and profitabtity, Compute the following for both this year and last year: a. The times interest earned ratio. b. The debt-toequity ratio. e. The gross margin perceatape. d. The retam on fotal asers. (Total assets at the beginning of lnst year were $12,960.000. e. The return on equity: (Stocthotders' equily at the bezianing of last jear totaled 59.048 .000 . There has been no change is common sock over the last two years) f. Is the compar's financial ieverage positive or negative? Explait, 2. You decide next to assess the compary's rock market peiformance. Asume that Lydex's itoek price at the end of this year is $72 per stare and thar at the end of last year it was \$40. For both this zear and last year, compute: a. The earnings per share. b. The dividend yield ratio. c. The dividend psyout ratio. d. The priceearnings ratio. Hox do itveston regaid Lydex Consany as compared to other companies in the industn?? Explain. e. The book value per share of common stock. Does the difference between martet value per share and book value per thare sugeest that the stock at its curreat price is a bargain? Explain. 3. You decide, finatly, to assess the company's liquidity and asset management. For both this year and last yeat, compute: a. Working capital. b. The current ratio. c. The acidest ratio. d. The average collection period. (The aecounts receivable at the beginning of last jear roraled \$1.560.000.) e. The average sale period. (The inventory at the beginning of last year totaled $1.920.000.) f. The operating cycle. g. The total asset turnover. (The total assers at the beginning of last year totaled $12,960,000.) 4. Prepare a brief memo that summarizes how Lydex is performing relative to its comperitors. To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry