Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which statement is the most accurate given the following information: Company A: Current Ratio: 1.3; Inventory Turnover: 8.0; Days Sales Outstanding: 20; Asset Turnover: 1.5;

image text in transcribed
Which statement is the most accurate given the following information: Company A: Current Ratio: 1.3; Inventory Turnover: 8.0; Days Sales Outstanding: 20; Asset Turnover: 1.5; Profit Margin: 9.4%, ROA: 8.7%; ROE: 26.3%; Debt /Equity: 1.4; P/E Ratio: 30.3 Company B: Current Ratio: 1.4; Inventory Turnover: 6.4; Days Sales Outstanding: 34; Asset Turnover: 0.8; Profit Margin: 13.6%; ROA: 12.6%; ROE: 14.6%; Debt /Equity: 0.8; P/E Ratio: 14.3 Company C: Current Ratio: 1.0; Inventory Turnover: 12.0; Days Sales Outstanding: 48; Asset Turnover: 1.0; Profit Margin: 5.3%; ROA: 7.3%; ROE: 18.4%; Debt /Equity: 0.4; P/Eco: 18.5 O Company A is the most efficient in generating sales on investments O Company C has the best margins O Company B has the lowest liquidity O Company A is the worst at collecting receivables O Company C uses the most debt

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_2

Step: 3

blur-text-image_3

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

Why Bitcoin

Authors: Tomer Strolight

1st Edition

9916697957, 978-9916697955

More Books

Students also viewed these Finance questions

Question

What are the strengths of the BCG approach?

Answered: 1 week ago