Current ratios Working capital A/R turnover Inventory Turnover Asset turnover Total debt to total assets Glow Corporation 2022 1.16 $11 31.7 times 16.6 times 2.4 times 86.9% 13.1% 30% 10% 24.5% 2023 .95 ($2) 45 times 22.5 times 3.2 times 81.7% 18.3% 33% 11.9% Blue Corporation 2022 2.25 $30 30 times 15 times 3.6 times 38.5% 14.2% 85.8% 25% 10% 35.5% 41.4$ 2023 2.17 $28 30 times 15 times 3.8 times 15.4% 84.6% 25% Sh. Equity to total assets Gross margin ratio Return on sales Return on assets Return on equity 186.3% 210.5% Required: Conduct financial analyses of the two companies on the basis of above data and deduct which is performing better and why? ( 10% 38.5% 45.5%

Current ratios Working capital A/R turnover Inventory Turnover Asset turnover Total debt to total assets Glow Corporation 2022 1.16 $11 31.7 times 16.6 times 2.4 times 86.9% 13.1% 30% 10% 24.5% 2023 .95 ($2) 45 times 22.5 times 3.2 times 81.7% 18.3% 33% 11.9% Blue Corporation 2022 2.25 $30 30 times 15 times 3.6 times 38.5% 14.2% 85.8% 25% 10% 35.5% 41.4$ 2023 2.17 $28 30 times 15 times 3.8 times 15.4% 84.6% 25% Sh. Equity to total assets Gross margin ratio Return on sales Return on assets Return on equity 186.3% 210.5% Required: Conduct financial analyses of the two companies on the basis of above data and deduct which is performing better and why? ( 10% 38.5% 45.5%

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 1WT

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