Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Weakest Strongest Category: Category: Describe your Rationale here: 2020 2019 2018 1.Liquidity Current 2.60x 2.06x 2.48x Quick 0.94x 0.96x 0.98x 2. Efficiency Average collection period

image text in transcribed

Weakest Strongest Category: Category: Describe your Rationale here: 2020 2019 2018 1.Liquidity Current 2.60x 2.06x 2.48x Quick 0.94x 0.96x 0.98x 2. Efficiency Average collection period 32 days 34 days 33 days Inventory turnover 62 days 58 days 66 days Days payable outstanding 33 days 34 days 33 days Fixed asset turnover 8.95% 9.09x 8.85x Total asset turnover 1.80X 1.77x 1.82x 3. Leverage Debt ratio (liabilities) 90.47% 104.04% 110.17% L/T Debt to Capital 65.09% 64.91% 66.33% Times interest earned 4.02x 4.00x 4.23x Fixed charge coverage 2.20x 2.15x 2.25x 3. Leverage Debt ratio (liabilities) 90.47% 104.04% 110.17% L/T Debt to Capital 65.09% 64.91% 66.33% Times interest earned 4.02x 4.00x 4.23x Fixed charge coverage 2.20x 2.15x 2.25x 4. Profitability Gross profit margin 48.21% 48.39% 48.52% Operating profit margin 15.05% 15.56% 15.52% Net profit margin 8.73% 9.02% 9.41% 5. Returns Return on equity 6.90% 6.51% 5.19% From the list of five general performance categories above, select what you consider to be the strongest category and the weakest category. Importantly, describe your rationale! Weakest Strongest Category: Category: Describe your Rationale here: 2020 2019 2018 1.Liquidity Current 2.60x 2.06x 2.48x Quick 0.94x 0.96x 0.98x 2. Efficiency Average collection period 32 days 34 days 33 days Inventory turnover 62 days 58 days 66 days Days payable outstanding 33 days 34 days 33 days Fixed asset turnover 8.95% 9.09x 8.85x Total asset turnover 1.80X 1.77x 1.82x 3. Leverage Debt ratio (liabilities) 90.47% 104.04% 110.17% L/T Debt to Capital 65.09% 64.91% 66.33% Times interest earned 4.02x 4.00x 4.23x Fixed charge coverage 2.20x 2.15x 2.25x 3. Leverage Debt ratio (liabilities) 90.47% 104.04% 110.17% L/T Debt to Capital 65.09% 64.91% 66.33% Times interest earned 4.02x 4.00x 4.23x Fixed charge coverage 2.20x 2.15x 2.25x 4. Profitability Gross profit margin 48.21% 48.39% 48.52% Operating profit margin 15.05% 15.56% 15.52% Net profit margin 8.73% 9.02% 9.41% 5. Returns Return on equity 6.90% 6.51% 5.19% From the list of five general performance categories above, select what you consider to be the strongest category and the weakest category. Importantly, describe your rationale

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

Corporate Treasury And Cash Management

Authors: Robert Cooper

1st Edition

1349512699, 9781349512690

More Books

Students also viewed these Finance questions

Question

Prepare the closing entry for the dividends account.

Answered: 1 week ago

Question

Corporate annual reports typically do not contain

Answered: 1 week ago

Question

Explain the pages in white the expert taxes

Answered: 1 week ago