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Price-to-cash-flow Inventory turnover Debt-to-equity Ratios Calculated Year 1 Year 2 6.40 12.80 0.20 8.32 15.36 0.21 Year 3 9.32 17.20 0.25 Based on the preceding
Price-to-cash-flow Inventory turnover Debt-to-equity Ratios Calculated Year 1 Year 2 6.40 12.80 0.20 8.32 15.36 0.21 Year 3 9.32 17.20 0.25 Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply. The company's creditworthiness has improved over these three years as evidenced by the increase in its debt-to-equity ratio over time. An improvement in the inventory turnover ratio could likely be explained by the new sales-forecasting strategies that led to better inventory management. Blue Hamster Manufacturing Inc.'s ability to meet its debt obligations has worsened since its debt-to-equity ratio increased from 0.20 to 0.25. A plausible reason why Blue Hamster Manufacturing Inc.'s price-to-cash-flow ratio has increased is that investors expect higher cash flow per share in the future.
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