Question
You are the newly appointed treasurer and your partner is the newly appointed controller of your company. In order to learn more about your company,
You are the newly appointed treasurer and your partner is the newly appointed controller of your company. In order to learn more about your company, you have decided to analyze the company's financial performance over the last 2 years. To do this, you have decided to calculate the following ratios for the company's 2 most recent years in the noted categories:
1.Liquidity Ratio:
a.Current Ratio
2.Leverage Ratios
a.Debt-to-Assets Ratio
b.Debt-to-Equity Ratio
c.Interest Coverage
In addition, you have decided to evaluate the Return on Equity (ROE) of the company by calculating the DuPont Ratio, including the Profit Margin, Asset Turnover, and Financial Leverage Ratios.
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