Financial Ratios for 2018 Current Ratio Quick ratio Receivable Turnover Inventory Turnover Debt Ratio Debt-equity Ratio Times Interest Earned Ratio Gross Profit Margin Ratio Net Profit Margin Ratio Return on Assets Return on Equity Competitor C 4.5:1 3.625:1 7 times 5.3 times 0.075:1 0.825:1 2.6 times 38.5% 14.5% 16% 12% Competitor B 6:1 4.25:1 20 times 8.6 times 0.2:1 P&P Mfg. Co. 9.31:1 6.9:1 18.9 times 7.8 times 0.15:1 0.17:1 3.4 times 49.4% 17.6% 26.9% 31.5% 1.75:1 4.5 times 51.2% 22.5% 24% 22%
Financial Ratios for 2018 Current Ratio Quick ratio Receivable Turnover Inventory Turnover Debt Ratio Debt-equity Ratio Times Interest Earned Ratio Gross Profit Margin Ratio Net Profit Margin Ratio Return on Assets Return on Equity Competitor C 4.5:1 3.625:1 7 times 5.3 times 0.075:1 0.825:1 2.6 times 38.5% 14.5% 16% 12% Competitor B 6:1 4.25:1 20 times 8.6 times 0.2:1 P&P Mfg. Co. 9.31:1 6.9:1 18.9 times 7.8 times 0.15:1 0.17:1 3.4 times 49.4% 17.6% 26.9% 31.5% 1.75:1 4.5 times 51.2% 22.5% 24% 22%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
100%
Compare the resulting ratios of P and P Manufacturing Company for 2018 (per your computation) with its competitors in the table given below.
Transcribed Image Text:P and P Manufacturing Company
Comparative Statements of Financial Position
As of 31 December 2018, 2017, and 2016
In Peso
2018
P581, 970.00
686,725.00
450,470.00
225,000.00
845,000.00
854,500.00
P3.643,665.00
P184,620.00
350,000.00
3,109,045.00
P3.643.665.00
2016
2017
P290,000.00
340,000.00
270,000.00
225,000.00
895,000.00
825,000.00
P2,845,000.00
P165,000.00
550,000.00
2,130,000.00
P2,845,000.00
Account
P215,000.00
130,000.00
0.00
Cash
Accounts Receivable
Inventories
350,000.00
945,000.00
290,000.00
P1,930,000.00
P200,000.00
750,000.00
980,000.00
P1,930,000.00
Land
Buildings, Net
Equipment, Net
Total Assets
Accounts Payable
Long-term Debt
Capital Stock
Liabilities
Total
and
Shareholders' Equity
Transcribed Image Text:Competitor C
4.5:1
3.625:1
7 times
5.3 times
0.075:1
Financial Ratios for 2018
Current Ratio
Quick ratio
Receivable Turnover
Inventory Turnover
Debt Ratio
Debt-equity Ratio
Times Interest Earned Ratio
Gross Profit Margin Ratio
Net Profit Margin Ratio
Return on Assets
Return on Equity
P&P Mfg. Co.
9.31:1
6.9:1
18.9 times
7.8 times
0.15:1
0.17:1
Competitor B
6:1
4.25:1
20 times
8.6 times
0.2:1
1.75:1
4.5 times
0.825:1
2.6 times
3.4 times
49.4%
17.6%
26.9%
31.5%
51.2%
22.5%
24%
22%
38.5%
14.5%
16%
12%
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