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Suppose you are conducting an analysis of the financial performance of Blue Hamster Manufacturing Inc. over the past three years. The company did not issue

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Suppose you are conducting an analysis of the financial performance of Blue Hamster Manufacturing Inc. over the past three years. The company did not issue new shares during these three years, and has faced some operational difficulties. The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company's relevant financial data, made reasonable assumptions based on the information available, and calculated the following ratios. Ratios Calculated Year 1 Year 2 Year 3 Price-to-free-cash-flow 2.80 1.96 1.57 Inventory turnover 5,60 4.48 3.58 Debt-to-equity 0.60 0.48 0.38 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 plausible reason why Blue Hamster Manufacturing Inc.'s price to free cash flow ratio has decreased is that investors expect lower cash flow per share in the future. A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm. Blue Hamster Manufacturing Inc.'s ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.60 to 038 Ratios Calculated Year 1 Year 2 Year 3 Price-to-free-cash-flow 2.80 1.96 1.57 Inventory turnover 5.60 4.48 3.58 Debt-to-equity 0.60 0.48 0.38 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 plausible reason why Blue Hamster Manufacturing Inc.'s price to free cash flow ratio has decreased is that investors expect lower cash flow per share in the future. A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm. Blue Hamster Manufacturing Inc.'s ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.60 to 0.38. A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors

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