River Valley Production Inc. seeks to increase its market share and improve its results. The company takes as a starting point the current scenario and the results obtained in the years 2018 and 2019. Like other companies, River Valley uses financial ratios (ratios) as tools for analyzing the results obtained at the end of the period. Consider the data presented in the financial statements below and analyze the company's results based on financial ratios. 1. Use the financial statements to calculate the following financial ratios for the years 2018 and 2019 ( 22 points): 1.1 Current Ratio 1.2 Quick Ratio 1.3 Inventory Turnover Ratio 1.4 Days Sales Outstanding (DSO) 1.5 Assets Turnover Ratio 1.6 Return on Assets (ROA) 1.7 Return on Equity (ROE) 1.8 Return on Investment (ROI) 1.9 Profit Margin 1.10 Debt to Equity Ratio 1.11 Price / Earning Ratio 2. Argues how the liquidity of the company responds to the working capital necessary to meet its debts in the short term and operating expenses. (6 points) 3. Explain how efficient asset management responds to the company's sales achievement. ( 6 points) 4. Interpret the results of the debt to equity ratio and how the company has managed the debt in the last two years. (6 points) 5. Calculate the Dupont formula and present reasons that justify the profitability of the company and motivate the capital investment. (10 points) 6. Explain the impact it has on financial ratios, ifhthe company decided to reduce the cost of goods sold due to the decrease in demand for products and restricted access to raw materials. (6 points) 7. Contrast the company's 2019 financial ratios with the industry's financial ratios. (11 marks) 8. Taking into consideration the results obtained, what decisions should the manager and his work team make to improve fiscal health and achieve the growth of the company? (8 points) River Valley Production Inc. seeks to increase its market share and improve its results. The company takes as a starting point the current scenario and the results obtained in the years 2018 and 2019. Like other companies, River Valley uses financial ratios (ratios) as tools for analyzing the results obtained at the end of the period. Consider the data presented in the financial statements below and analyze the company's results based on financial ratios. 1. Use the financial statements to calculate the following financial ratios for the years 2018 and 2019 ( 22 points): 1.1 Current Ratio 1.2 Quick Ratio 1.3 Inventory Turnover Ratio 1.4 Days Sales Outstanding (DSO) 1.5 Assets Turnover Ratio 1.6 Return on Assets (ROA) 1.7 Return on Equity (ROE) 1.8 Return on Investment (ROI) 1.9 Profit Margin 1.10 Debt to Equity Ratio 1.11 Price / Earning Ratio 2. Argues how the liquidity of the company responds to the working capital necessary to meet its debts in the short term and operating expenses. (6 points) 3. Explain how efficient asset management responds to the company's sales achievement. ( 6 points) 4. Interpret the results of the debt to equity ratio and how the company has managed the debt in the last two years. (6 points) 5. Calculate the Dupont formula and present reasons that justify the profitability of the company and motivate the capital investment. (10 points) 6. Explain the impact it has on financial ratios, ifhthe company decided to reduce the cost of goods sold due to the decrease in demand for products and restricted access to raw materials. (6 points) 7. Contrast the company's 2019 financial ratios with the industry's financial ratios. (11 marks) 8. Taking into consideration the results obtained, what decisions should the manager and his work team make to improve fiscal health and achieve the growth of the company? (8 points)
