Question
Ratios Calculated Year 1 Year 2 Year 3 Price-to-free-cash-flow 5.60 7.28 8.15 Inventory turnover 11.20 13.44 15.05 Debt-to-equity 0.70 0.74 0.89 Based on the preceding
Ratios Calculated
Year 1 | Year 2 | Year 3 | |
---|---|---|---|
Price-to-free-cash-flow | 5.60 | 7.28 | 8.15 |
Inventory turnover | 11.20 | 13.44 | 15.05 |
Debt-to-equity | 0.70 | 0.74 | 0.89 |
Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply.
A The market value of Green Caterpillar Garden Supplies Inc.s common shares declined over the three years.
B A plausible reason why Green Caterpillar Garden Supplies Inc.s price to free cash flow ratio has increased is that investors expect higher cash flow per share in the future.
C The companys creditworthiness has improved over these three years as evidenced by the increase in its debt-to-equity ratio over time.
D An improvement in the inventory turnover ratio could likely be explained by the new sales-forecasting strategies that led to better
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