Question
You have been hired as an analyst for Bank WA and your team is working on an independent assessment of a firm that specializes in
You have been hired as an analyst for Bank WA and your team is working on an independent assessment of a firm that specializes in the production of freshly imported farm products from New Zealand. Your assistant has provided you with the following data about the company and its industry.
Ratio |
2019 |
2018 |
2017 | 2019- Industry Average |
Long-term debt | 0.45 | 0.40 | 0.35 | 0.35 |
Inventory Turnover | 62.65 | 42.42 | 32.25 | 53.25 |
Depreciation/Total Assets | 0.25 | 0.014 | 0.018 | 0.015 |
Days sales in receivables | 113 | 98 | 94 | 130.25 |
Debt to Equity | 0.75 | 0.85 | 0.90 | 0.88 |
Profit Margin | 0.082 | 0.07 | 0.06 | 0.12 |
Total Asset Turnover | 0.54 | 0.65 | 0.70 | 0.40 |
Quick Ratio | 1.028 | 1.03 | 1.029 | 1.031 |
Current Ratio | 1.33 | 1.21 | 1.15 | 1.25 |
Interest coverage Ratio | 0.9 | 4.375 | 4.45 | 4.65 |
Q) What can you say about the firm's asset management? Be as complete as possible given the above information, but do not use any irrelevant information.
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