Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information calculate the - Debt to Equity Ratio - Interest Coverage Ratio - Asset Turnover Ratio - Inventory Turnover Ratio Make sure

Use the following information calculate the

- Debt to Equity Ratio

- Interest Coverage Ratio

- Asset Turnover Ratio

- Inventory Turnover Ratio

Make sure to show Formula's
Ascena Carter's The Children's Place
Income statement
Sales 6,578,300,000 3,462,269,000 1,938,084,000
Cost of Good Sold 2,786,800,000 1,964,786,000 1,254,488,000
Depreciation & Amortization 355,500,000 91,399,000 68,884,000
Interest Expense 113,000,000 34,569,000 2,804,000
Net income -39,700,000 282,068,000 100,960,000
EBITA-Operating Income + D & A 389,800,000 482,832,000 180,212,000
EBIT - Operating Income 34,300,000 391,433,000 111,328,000
Balance Sheet
Inventory (2017) 639,300,000 548,722,000 324,435,000
Inventory (2018) 622,900,000 574,226,000 303,466,000
Current Assets 1,110,300,000 1,042,958,000 435,395,000
Total Assets (2017) 3,871,500,000 2,071,042,000 940,228,000
Total Assets (2018) 3,570,500,000 2,058,858,000 727,046,000
Current Liabilities 890,800,000 327,421,000 331,399,000
Total Liabilities 2,772,000,000 1,189,425,000 412,609,000
Total Equity (2017) 821,000,000 857,416,000 473,699,000
Total Equity (2018) 798,500,000 869,433,000 314,437,000

Profitability Ratios

Return on Assets -1.07% 13.66% 12.11%
Return on Equity -2.21% 32.67% 25.62%
Profit Margin -0.60% 8.15% 5.21%
Liquidity Ratios
Current Ratio 1.25 3.19 1.31
Quick Ratio 0.55 1.43 0.4
Debt Ratios
Debt to Equity Ratio 3.47 1.37 1.31
Interest Coverage Ratio 0.3 11.32 39.7
Efficiency Ratios
Asset Turnover Ratio 1.77 1.68 2.32
Inventory Turnover Ratio 4.42 3.5 4
Debt to Equity Ratio
Total Liabilities/
Total Shareholder Equity
Total
Interest Coverage Ratio
EBIT/
Interest Expense
Total
Asset Turnover Ratio
Sales/
Average Total Assets
Total
Inventory Turnover Ratio
Costs of Goods Sold/
Average Inventory

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Society Research On Audit Practice And Regulations

Authors: Wally Smieliauskas, Minlei Ye, Ping Zhang

1st Edition

1138314129, 978-1138314122

More Books

Students also viewed these Accounting questions

Question

How can market research benefit entrepreneurs when starting up?

Answered: 1 week ago

Question

is particularly relevant to these issues.)

Answered: 1 week ago