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You all get the chance to play the role of financial analyst. 1) The summary should be evaluation of the company's performance for each major
You all get the chance to play the role of financial analyst.
1) The summary should be evaluation of the company's performance for each major category of ratios (liquidity, solvency, and profitability) .
2) Focus on major financial differences as you make an overall conclusion on the company's performance and whether it would be a good career choice. Be sure to support your answer
2043 Given Category and Individual Ratios 2042 Calculated Value from Cengage Value Liquidity 1 Dollars $2,790,000 $ 500,000 Working Capital 2 Current ratio Times 4.1 1 3 Quick ratio Times 2.5 0.5 4 Accounts receivable turnover Times 16 5 5 Number of days' sales in receivables Days 22.8 60 6 Inventory turnover Times 5 6 7 Number of days' sales in inventory Days 73 60 Solvency 00 8 Ratio of fixed assets to long-term liabilities Times 2.2 1 9 Ratio of liabilities to stockholders' equity Times 0.4 3 10 Times interest earned Times 7.6 5 Profitability 11 Asset turnover Times 1.08 N 2 12 Return on total assets % 11.50% 5% 13 Return on stockholders' equity 24 13.30% 87. 14 Return on common stockholders' equity % 13.60%. 107 15 Earnings per share on common stock $ $8.55 $ 2.00 16 Price-earnings ratio Times 14 20 17 Dividends per share of common stock $ $0.50 $ 0.50 18 Dividend yield 24 0.407 1.3%Step by Step Solution
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