Question
Use the information found in Worldwide Widget Manufacturing's financial statements to calculate all of the listed financial ratios in the above table for your company.
- Use the information found in Worldwide Widget Manufacturing's financial statements to calculate all of the listed financial ratios in the above table for your company. Then, for each ratio, provide a comparison of the company's result with the industry standards, indicating if your company's results are lower than, higher than, slower than, or faster than the industry standards.
- Calculate your company's internal and sustainable growth rates.
You'll need to compare your company's ratios with the industry's standards.
Worldwide Widget Manufacturing, Inc.
Company Industry Comparison
Current ratio 2.2 times
Quick ratio 1.1 times
Cash ratio 0.35 times
Inventory turnover 2 times or 1 time
Days' sales in inventory 135 days or 335 days
Average payment period 110 days
Sales to working capital 3 times
Total asset turnover 0.6 times
Debt-to-equity 1.1 times
Profit margin 16.5%
Gross profit margin 48.13%
ROA 8.78%
ROE 19.45%
Dividend payout 32%
(Dear tutor my financial statements as required for this question has been uploaded to my file. But if you need me to upload please let me know which one or if all is needed. I have Balance Sheet, Income Statement, Statement of Cashflows and Statement of Retained Earnings. Thank you Respectfully.)
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