Question
The following table contains certain financial measurements and ratios from the 2017 and 2016 GAAP financial statements of a company. 2017 2016 Gross Margin 47.2%
The following table contains certain financial measurements and ratios from the 2017 and 2016 GAAP financial statements of a company.
| 2017 | 2016 |
Gross Margin | 47.2% | 45.3% |
Operating Margin | 24.7% | 23.8% |
Net Margin | 12.2% | 13.1% |
Total Asset Turnover | 1.01x | 0.98x |
Return on Assets | 12.3% | 12.8% |
Current Ratio | 2.47x | 2.35x |
Quick Ratio | 1.18x | 1.25x |
Days in Accounts Receivable | 58.9 days | 60.1 days |
Inventory Turnover | 3.73x | 3.97x |
Debt-to-total assets | 63.95% | 61.81% |
Debt-to-equity Ratio | 1.77x | 1.62x |
- Did the company improve or worsen its ability to meet its debts and obligations on a short-term basis at the end of 2017 as compared to 2016? pick one (Improve or Worsen)
- Did the company improve or worsen its ability to meet its debts and obligations from a short-term lenders perspective at the end of 2017 as compared to 2016? pick one (Improve or Worsen)
- Did the company manage its accounts receivable to generate cash more or less efficiently during 2017 as compared to 2016? Pick one (More or Less)
- Did the company manage its inventory to generate cash more or less efficiently during 2017 as compared to 2016? Pick one (More or Less)
- Did the company have a capital structure with higher or lower financial leverage and financial risk at the end of 2017 as compared to 2016? Pick one (Higher or Lower)
- Based on the change in its financial leverage, did the company most likely borrow money or sell stock during 2017? Pick one (Borrow or Sell Stock)
- Did the company use its assets to generate sales more or less efficiently during 2017as compared to 2016? Pick one (More or Less)
- Did the company use its assets to more or less efficiently to create profits during 2017 as compared to 2016? Pick one (More or Less)
- Did the company sell its products at prices with higher or lower average markups during 2017 as compared to 2016? Pick one (Higher or Lower)
- Was the company more or less efficient in managing its business in fiscal year 2017 as compared to fiscal year 2016 in terms of the percentage of overall profit generated from net sales? Pick one (More or Less)
PLEASE HELP BY ANSWERING AND GIVING A SHORT EXPLANATION FOR EACH PART (EX: Gross Margin increased from 2016 to 2017) WILL UPVOTE
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