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What do the ratios calculated below communicate about the financial strengths and weaknesses of this company? Based on your calculations, would you invest in this
- What do the ratios calculated below communicate about the financial strengths and weaknesses of this company?
- Based on your calculations, would you invest in this Company, why or why not
Projected Ratlos 12/31/17 Historical Ratios 31/16 0.95 0.56 1.18 3.79 Current Ratio Quick Ratio Total Debt-to-Total-Assets Ratio Total Debt-to-Equity Ratio Times-Interest-Earned Ratio Inventory Turnover Fixed Assets Turnover Total Assets Turnover Accounts Receivable Turnover Average Collection Period Gross Profit Margin % Operating Profit Margin % ROA % ROE % 0.83 0.50 1.24 2.43 13 9.50 0.95 0.56 1.18 3.79 Current Ratio Quick Ratio Debt-to-Total-Assets Ratio 0.60 1.20 3.19 1.01 0.69 1.19 3.81 Times-Interest-Earned Ratio Inventory Turnover Fixed Assets Turnover Total Assets Turnover Accounts Receivable Turnover Average Collection Period Gross Profit Margin % 10.00 3.50 9.90 3.40 1.37 3.70 1.10 12 1.35 12 29.60 46% 12% 9% 40% 1.37 13 28.52 42% 696 13% 77% 28.52 42% 13% 77% 28.57 46% 14% 89% 9% 45% 5% 98% 13% ROA %
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