Question :

a) Based on the organization's financial health & performance below, forecast its future performance.

b) what should the organization do next? Recommend.

2019		2020
1. Current ratio =current assets / current liabilities = 1.89		1. Current ratio =current assets / current liabilities = 1.86
2. Acid-test ratio =cash + account receivablecurrent liabilities =1.03		2. Acid-test ratio =cash + account receivablecurrent liabilities =1.12
3. Days in receivables =account receivable/daily credit sales =70.01 days		3. Days in receivables =account receivable/daily credit sales =81.20 days
4. Account receivable turnover = annual credit sales/account receivable =5.21x		4. Account receivable turnover = annual credit sales/account receivable =4.50x
5. Days in inventory =inventorydaily cost of goods sold =109.59 days		5. Days in inventory =inventorydaily cost of goods sold =92.46 days

6. Inventory turnover =cost of goods/ sold inventory = 3.33x		6. Inventory turnover =cost of goods/ sold inventory = 3.95x
7. Operating return on assets =operating profits/total assets =0.011 @ 1.1%		7. Operating return on assets =operating profits/total assets =0.117 @ 11.7%
8. Operating profit margin =operating profits/sales = 0.008 @ 0.8%		8. Operating profit margin =operating profits/sales = 0.078 @ 7.8%
9. Total asset turnover =sales/total assets =1.34x		9. Total asset turnover =sales/total assets =1.51x
10. Fixed asset turnover =sales /net fixed assets =8.56x		10. Fixed asset turnover =sales /net fixed assets =11.42x
11. Debt ratio =total debt/total assets =0.513 @ 51.3%		11. Debt ratio =total debt/total assets =0.508 @ 50..8%
12. Return on equity = net income /total common equity =0.0137 @ 1.37 %		12. Return on equity = net income /total common equity =0.1821 @ 18.21 %