Ratio Sustainable Technologies Comparison to Industry Example: Current ratio .7418 Less than median. Quick ratio 0.3900 Less than the median Cash ratio 0.1496 Less than the median. Total asset turnover 2.014 Inventory turnover 27.34 More than the upper quartile More than the upper quartile More than the upper quartile Receivables turnover 54.915 0.7477 Less than the median Debt-to-equity ratio Equity multiplier 1.748 Less than the median Times interest earned 6.365 Less than the median Cash coverage 9.227 Less than the median Profit margin 0.0664 or 6.64% Return on Assets 0.1337 or 13.37% Less than the upper quartile More than the upper quartile Less than the upper quartile Return on Equity 0.2336 or 23.37 % Page 3 of 4 Environmental Remediation Equipment Industry Ratios Lower Quartile Median Upper Quartile 0.50 1.43 1.86 0.35 0.21 0.08 0.68 4.89 6.27 0.21 0.85 0.62 0.39 1.38 10.89 14.11 6.15 9.82 Current ratio Quick ratio Cash ratio Total asset turnover Inventory turnover Receivables turnover Debt-eqity ratio Equity multiplier Times interest earned Cash coverage ratio Profit margin Return on assets Return on equity 0.68 1.08 1.56 2.08 1.68 5.18 8.06 5.84 4.05% 6.05% 9.93% 9.41 5.10% 10.53% 2.56 9.83 10.27 7.15% 13.21% 26.15% 18.14% 2. Explain and compare the three liquidity ratios above. The liquidity ratios include: current ratio, quick ratio, debt to equity ratio, and debt to assets a. Explain the possible reasons Sustainable Technologies' ratios are above or below the industry median or quartiles and comment on why the comparisons might be viewed as both a positive and a negative relative to the industry. 3. Explain and compare the three asset management ratios above. a. Explain the possible reasons Sustainable Technologies' ratios are above or below the industry median or quartiles and comment on why the comparisons might be viewed as both a positive and a negative relative to the industry. 4. Explain and compare the debt-to-equity ratio and equity multiplier above. a. Explain the possible reasons Sustainable Technologies' ratios are above or below the industry median or quartiles and comment on why the comparisons might be viewed as both a positive and a negative relative to the industry. 5. Explain and compare the times interest earned and cash coverage ratios above. a. Explain the possible reasons Sustainable Technologies' ratios are above or below the industry median or quartiles and comment on why the comparisons might be viewed as both a positive and a negative relative to the industry. 6. Explain and compare the three profitability ratios above. a. Explain the possible reasons Sustainable Technologies' ratios are above or below the industry median or quartiles and comment on why the comparisons might be viewed as both a positive and a negative relative to the industry
