Start Here $-$ Case Introduction

Case Study Narrative

Financial Statements

$1-$Explain Financial Ratios

$\backslash$table$[[$Ratio Analysis $-$ X$-$Chip, Inc.$],[,2017,2016,2015,\backslash$table$[[$Industry$],[$Average$],[2017]],\backslash$table$[[$Indicate$],[$Better$/$Worse$],[$Than Industry$],[$Average$]],$What This Ratio Says$],[$Financial Leverage $($Debt$)$ Ratios:$],[$Debt to Asset Ratio,,$0\mathrm{.}46,0\mathrm{.}41,0\mathrm{.}25,,],[$Debt to Equity Ratio,,$0\mathrm{.}84,0\mathrm{.}70,1,,],[$Interest Coverage Ratio,,$2\mathrm{.}09,1\mathrm{.}56,2\mathrm{.}5,,],[$Liquidity Ratios$],[],[$Quick Ratio,,$0\mathrm{.}273,0\mathrm{.}241,1\mathrm{.}1,,],[$Current Ratio,,$1\mathrm{.}648,1\mathrm{.}616,2\mathrm{.}1,,],[,,,,,,],[$Profitability Ratios$],[$Net Return on Assets,,$3\mathrm{.}23\%,1\mathrm{.}72\%,12\mathrm{.}00\%,,],[$Net Return on Equity,,$5\mathrm{.}70\%,2\mathrm{.}93\%,10\mathrm{.}00\%,,],[$Efficiency Ratios$],[],[$Inventory Turnover,,$3\mathrm{.}97,2\mathrm{.}50,5\mathrm{.}2,,],[$Comnute # of Comman Stacks,,,,,,$],[$Compute # of Common Stocks,,$20,000,20,000,,,],[$Compute Market Value Ratios$],[$Earnings per Share $($EPS$),,0\mathrm{.}17,0\mathrm{.}09,,,],[,,,,,,],[$Compute Dividends Paid to Stockholders:$],[$Current Yr$.$ Retained Earnings,,$26,339,25,452,,,],[$Prior Yr$.$ Retained Earnings,,$25,452,24,688,,,],[$Change in Retained Earnings,,$787,764,,,],[$Net Income Pr$.$ Year,,$1,869,1,751,,,],[$Dividends$,,1,082,987,,,],[\%$ of Net Income,,$57\mathrm{.}9\%,56\mathrm{.}4\%,,,]]$