Question
The ABC Corporation is your first company client. The ABC is in talk with The XYZ Group, LLC for the possibility of forming a business
The ABC Corporation is your first company client. The ABC is in talk with The XYZ Group, LLC for the possibility of forming a business collaboration relationship. The XYZ Group, LLC provided its financial statements, as below, for ABCs review, and ABC asks you, as their consultant, to evaluate the financials of XYZ through the financial ratio analysis to help them make a final decision on the collaboration. In particular, ABC asks you to pay special attention on XYZs current ratio, quick ratio, debt ratio, TIE, DSO, inventory turnover, fixed asset turnover, total asset turnover, operating margin, profit margin and basic earning power. Whats your conclusion, and why?
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