Question
Ratio of a company : RATIO 2019 2020 Industry Average Liquidity: Current Ratio 6 4 5 Acid-test (Quick) Ratio 3.25 1.92 3 Average Collection Period
Ratio of a company :
RATIO |
|
2019 |
2020 | Industry Average |
Liquidity: |
|
|
|
|
Current Ratio |
| 6 | 4 | 5 |
Acid-test (Quick) Ratio |
| 3.25 | 1.92 | 3 |
Average Collection Period |
| 137 | 107 | 90 |
Persediaan Turnover |
| 1.27 | 1.36 | 2.2 |
|
|
|
|
|
Operating profitability: |
|
|
|
|
ROA |
| 10.42% | 13.85% | 15% |
Operating Profit Margin |
| 20.83% | 24.83% | 20% |
Total Asset Turnover |
| 0.5 | 0.56 | 0.75 |
Average Collection Period |
| 137 | 107 | 90 |
Persediaan Turnover |
| 1.27 | 1.36 | 2.2 |
Fixed Asset Turnover |
| 1 | 1.04 | 1 |
|
|
|
|
|
Financing: |
|
|
|
|
Debt Ratio |
| 0.33 | 0.35 | 0.33 |
Times Interest Earned |
| 5 | 6 | 7 |
|
|
|
|
|
Return on Common Stockholders |
|
|
|
|
Return on Common Equity |
| 7.50% | 10.60% | 9% |
Please show the calculation and analysis of the ratio of solvency ratio of the company in 2020 by comparing with the previous year's performance and industry averages.
Thank you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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