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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.

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