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Show All work A . Why are ratios useful? What are the five major categories of ratios? B . Calculate D Leon s 2 0
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A Why are ratios useful? What are the five major categories of ratios?
B Calculate DLeons current and quick ratios based on the projected balance sheet and income statement data. What can you say about the companys liquidity positions in in and as projected for We often think of ratios as being useful to managers to help run the business, to bankers for credit analysis, and to stockholders for stock valuation. Would these different types of analysts have an equal i
CCalculate the inventory turnover, days sales outstanding DSO fixed assets turnover, and total assets turnover. How does DLeons utilization of assets stack up against other firms in the industry?
D Calculate the debttocapital and timesinterestearned ratios. how does D'Leon compare with the industry with respect to finacial leaverage? what can you conclude from these ratios?
E Calculate the operating margin, profit margin, basic earning power BEP return on assets ROA return on equity ROE and return on invested capital ROIC What can you say about these ratios?
F Calculate the priceearnings ratio and marketbook ratio. Do these ratios indicate that investors are expected to have a high or low opinion of the company?
G Use the DuPont equation to provide a summary and overview of DLeons financial condition as projected for what are the firm's major strengths and weaknesses
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