Based on your Ratio Analysis, what steps would you advise your new client to take due to their company's current performance? Please give as detailed an answer as possible. Gross Profit Margin EBIT to Percentage of Sales Net Profit Margin Return on equity Return on Assets S. Canada Inc. Financial Ratios *Refer to Brightspace for the Ratio Formulas 2016 2015 Asset Turnover Working Capital Current Ratio Quick Ratio Days Sales Outstanding (DSO) Accounts Receivable Turnover (ART) Inventory Days on Hand Inventory Turnover Time Interest Earned Debt to Equity ratio Debt to Assets 31.78 -1.99 -2.16 -0.86 -0.51 0.24 $6,423,000.00 2.50 0.87 76.81 4.75 1,110.87 0.33 -6.46 68.18 40.54 32.60 -10.51 -9.89 -3.42 -2.08 0.21 $5,313,000.00 2.13 0.71 83.30 4.38 1,119.67 0.33 -360.00 67.98 40.47 2014 36.17 12.28 13.39 4.49 2.78 0.21 $7,634,000.00 2.21 0.94 73.61 4.96 1,164.57 0.31 45.37 62.34 38.40
Based on your Ratio Analysis, what steps would you advise your new client to take due to their company's current performance? Please give as detailed an answer as possible. Gross Profit Margin EBIT to Percentage of Sales Net Profit Margin Return on equity Return on Assets S. Canada Inc. Financial Ratios *Refer to Brightspace for the Ratio Formulas 2016 2015 Asset Turnover Working Capital Current Ratio Quick Ratio Days Sales Outstanding (DSO) Accounts Receivable Turnover (ART) Inventory Days on Hand Inventory Turnover Time Interest Earned Debt to Equity ratio Debt to Assets 31.78 -1.99 -2.16 -0.86 -0.51 0.24 $6,423,000.00 2.50 0.87 76.81 4.75 1,110.87 0.33 -6.46 68.18 40.54 32.60 -10.51 -9.89 -3.42 -2.08 0.21 $5,313,000.00 2.13 0.71 83.30 4.38 1,119.67 0.33 -360.00 67.98 40.47 2014 36.17 12.28 13.39 4.49 2.78 0.21 $7,634,000.00 2.21 0.94 73.61 4.96 1,164.57 0.31 45.37 62.34 38.40
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 87BPSB
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