Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Write a short memo for Ms Smith that addresses profitability, efficiency, Liquidity and financial flexibility of the seven companies. Limit to 600 words. 1.Explain what

Write a short memo for Ms Smith that addresses profitability, efficiency, Liquidity and financial flexibility of the seven companies. Limit to 600 words.

1.Explain what the ratios reveal about the profitability of the companies.

2.Evaluate the efficiency of the management of accounts receivable and inventories and advise on how best to improve.

3. Discuss the liquidity and financial flexibility of the companies.

Answers should be well reasoned, comprehensive and supported by the data from the ratios below calculated.

Comparison of 2018 & 2019 Profit Margin .2019 Profit Margin 2018 Profit Margin 34.88% TEXAS INSTRUMENTS 35.35% 31.18% MICROSOComparison of 2018 & 2019 Gross profit 2019 Gross profit 2018 Gross Profit Y 52 .. 65.90% MICROSOFT CORP 65.25% 63.71% TEXASComparison of 2018 & 2019 Return on Total Assets 2019 Return on Total Assets 2018 Return on Total Assets 19.51% TEXAS INSTRUM2019 Return on Owners Equity 2018 Return on Owners Equity 38.36% APPLE INC 34.18% 37.43% TEXAS INSTRUMENTS 39.40% 32.02% IBComparison of 2018 & 2019 Inventory turnover .2019 Inventory tumover 2018 Inventory Turnover 46.31 ALPHABET INC 40.20 26.59 AComparison of 2018 & 2019 Number of Days in Selling Period .2019 Number of Days in Selling Period 2018 Number of Days in SellComparison of 2018 & 2019 Accounts Receivable Turnover 2019 Accounts Receivable Tumover 2018 Accounts Receivable Turnover 149Comparison of 2018 & 2019 Number of Days in Collection period 2019 Number of Days in Collection period 2018 Number of Days inComparison of 2018 & 2019 Current Ratios Y 62 2019 Current Ratio 2018 Current Ratio 4.13 TEXAS INSTRUMENTS 3.27 3.37 ALPHABETComparison of 2018 & 2019 Quick Ratios 2019 Quick Ratio 2018 Quick Ratio 3.21 ALPHABET INC 3.75 3.04 TEXAS INSTRUMENTS 2.20 2Comparison of 2018 & 2019 Debt Ratios .2019 Debt Ratio 2018 Debt Ratio IBM 86.21% 3628% APPLE INC 73.27% 70.70% AMAZON 7245%Comparison of 2018 & 2019 Interest Coverage ratios 2019 Interest Coverage 2018 Interest Coverage 316.07 ALPHABET INC 270.61 IComparison of 2018 & 2019 Sales % Increase 2019 Sales % Increase 2018 Sales % Increase 20.45% AMAZON 30.93% 18.30% ALPHABET I

All information provided
 
 
 
 
 
 
 
 
 
 
 
 
 

Comparison of 2018 & 2019 Profit Margin 2019 Profit Margin 2018 Profit Margin 34.88% TEXAS INSTRUMENTS 35.35% 31,18% MICROSOFT CORP 15.02% 29.25% INTEL CORP 29.725 21.24% APPLE INC 22.41% 21.22% ALPHABET INC 2246% 12.22% IBM 10.9795 4.13% AMAZON 4.33% 0% 5% 10% 15% 20% 25% 30% 35% 40% 2019 Profit Margin and 2018 Profit Margin Company

Step by Step Solution

3.40 Rating (175 Votes )

There are 3 Steps involved in it

Step: 1

Ms Smith This short memo addresses the profitability efficiency liquidity and financial flexibility of the seven companies under study Profitability ratios shows to what extent sales are generating pr... 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

Excellence in Business Communication

Authors: John V. Thill, Courtland L. Bovee

9th edition

136103766, 978-0136103769

More Books

Students also viewed these Accounting questions

Question

Establish identity. cos( + k) = (-1)k cos , k any integer

Answered: 1 week ago