Question
What 6 major conclusions can be drawn from the ratios below about the companys future? Explain. (6 marks) Ratio 20X9 20X8 20X7 20X6 20X5 Current
- What 6 major conclusions can be drawn from the ratios below about the companys future? Explain.
(6 marks)
| Ratio | 20X9 | 20X8 | 20X7 | 20X6 | 20X5 |
| Current ratio |
2.08 |
2.26 |
2.51 |
2.43 |
2.50 |
| Quick ratio |
.97 |
1.34 |
1.82 |
1.76 |
1.64 |
| Profit before taxes divided by interest expense |
3.50 |
3.20 |
4.10 |
5.30 |
7.10 |
| Days to collect receivables |
108.20 |
83.10 |
105.20 |
80.60 |
71.60 |
| Days to sell inventory |
172.60 |
195.10 |
133.90 |
107.80 |
108.30 |
| Net profit divided by ordinary equity |
.05 |
.06 |
.10 |
.10 |
.11 |
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Principles Of Food Beverage And Labor Cost Controls
Authors: Paul R. Dittmer, J. Desmond Keefe
8th Edition
0471429929, 978-0471429920
