Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question: Interpret and analyze ratios The following ratios are available for the Future Telecom Company Ratio 2019 2018 Industry Average Current Ratio .65 .87 1
Question: Interpret and analyze ratios
The following ratios are available for the Future Telecom Company
Ratio | 2019 | 2018 | Industry Average |
Current Ratio | .65 | .87 | 1 |
Free cash flow | -5,000 | 40,000 | 30,000 |
Cash debt coverage | 0.1 | 0.3 | 0.2 |
Payout ratio | 0 | 5% | 8% |
Debt to total assets ratio | 57% | 51% | 50% |
Return on Assets | 3.1% | 4.6% | 5% |
Required: Analyze each of the ratios and discuss your overall opinion of the financial health of the company.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started