Financial Ratios for 2018 Current Ratio Quick ratio Recelvable Turnover Inventory Turnover Debt Ratio 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% Competitor B 6:1 4.25:1 20 times 8.6 times 0.2:1 1.75:1 Competitor C 4.5:1 3.625:1 7 times 5.3 times 0.075:1 Debt-equity Ratio Times Interest Earned Ratio Gross Profit Margin Ratio 0.825:1 2.6 times 38.5% 4.5 times 51.2%

Financial Ratios for 2018 Current Ratio Quick ratio Recelvable Turnover Inventory Turnover Debt Ratio 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% Competitor B 6:1 4.25:1 20 times 8.6 times 0.2:1 1.75:1 Competitor C 4.5:1 3.625:1 7 times 5.3 times 0.075:1 Debt-equity Ratio Times Interest Earned Ratio Gross Profit Margin Ratio 0.825:1 2.6 times 38.5% 4.5 times 51.2%

Name: Give a comment on the financial health and performance of the company
Uploaded: 2022-11-18T00:26:54.000Z
Channel: Bartleby
Description: Give a comment on the financial health and performance of the company (as benchmarked with competitors) using the following liquidity ratios: current ratiorecievable turnoverinventory turnoverquick ratio Competitor C4.5:13.625:17 times5.3 times0.075:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 81E

See similar textbooks

Similar questions

Ratio Industry GnG Ratios Ratios 1. Net Income Margin 7.5% 18.2% 2. Receivable Turnover Ratio 9. 14.41 3. Return on Asset Ratio 12% 9.29% 4. Debt to Asset Ratio 1:4 1:1 Interpretation and verbal analysis compared to industry ratios: 1. Liquidity 2. Profitability 3. Solvency
Ratio Industry Ratios GnG Ratios 1. Current Ratio 5.3 2. Acid Test Ratio 5.1 3. Gross Profit Ratio 30% 4. Net Income Margin 7.5% 5. Receivable Turnover Ratio 9 6. Return on Asset Ratio 12% 7. Debt to Asset Ratio 1:4 Interpretation and verbal analysis compared to industry ratios: 1. Liquidity 2. Profitability 3. Solvency Computations:
Use the financial ratios of company A and company B to answer the questions below. Company A Company B Yr t+1 Year t Yr t+1 Year t Current ratio 0.55 0.59 0.56 0.55 Accounts receivable turnover 6.22 6.25 5.06 4.87 Debt to total assets 40.5% 40% 67.8% 65.9% Times interest earned 8.80 30.6 5.97 6.33 Free cash flows (in millions) ($3,819) $3,173 $168 $550 Return on stockholders’equity 7.7% 7.7% 26.6% 23.3% Return on assets 4.3% 4.3% 8.9% 7.9% Profit margin…
Definitional problems: Listed are 11 terms that relate to ratio analysis:1. Book value per share2.Inventoryturnover3. Debt-to-equity ratio4. Average collection period5. Average sales period6. Return on common equity7. Earnings per share8. Price/earnings ratio9. Return on total assets10. Current ratio11. Accounts-receivable turnoverChoose the financial ratio or term from the list that most appropriately completes each of the following statements:1. The__________ tends to have an effect on the market price per share asreflected in the price/earnings ratio.2. The__________ indicates whether a stock is relatively cheap or relativelyexpensive in relation to current earnings. 3. The________ measures the amount that would be distributed to holders of common stock if all assets were sold at their balance-sheet carrying amount and if all creditors were paid off.4. The_____________ is a rough measure of how many times a company'saccounts…
Industry Ratios Ratio GnG Ratios 1. Current Ratio 5.3 7.08 2. Acid Test Ratio 5.1 6.8 3. Gross Profit Ratio 30% 40% 4. Net Income Margin 7.5% 18.2% 5. Receivable Turnover Ratio 14.41 6. Return on Asset Ratio 12% 9.29% 7. Debt to Asset Ratio 1:4 LA 1 Interpretation and verbal analysis compared to industry ratios: Liquidity 1. 2. Profitability 3. Solvency
I Current ratioli. Times interest earnedjli. Inventory turnover¡v. Total asset turnoverv. Operating profit marginVi. Debt ratiovi. Average collection periodVii Fixed asset turnoverixReturn on equity
MANCOSA POSTGRADUATE DIPLOMA IN PRORCT MANAGEMENT QUESTION REQUIRED Use the information provided below to calculate the following ratios. Where applicable, und e answers to two decimal places 111 Gross profe margin 312 Operating profit margin 31.3 invertory turnover period 31.4 Trade recelvatles peried 31.5 Trade payables period 31 316 Current ratio 3.1.7 Acid test ratio 3.18 Return on capital employed 32 Comment on the control ef debtors by Saturn imited Sugpest TWO 2) ways in which Saturn Limited can improve its operating profit margin. 33 INFORMATION Excerpts of financial data of Satum Limited for 2019 are as follows: STATEMENT OF COMPREHINSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 2600 00 Cost of sales Gros proft Operating profit 1400 000 600 000 40 000 S60 00 Interest expense Proft before tas Tan N STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: 2019 2008 ASSETS Non-current assets Inventories Accounts recelvable 780000 500 000 240 000 120 000 45L000 1250 p0 EQUITY AND…
Selected ratios formulars Unilever 2021 BOPP 2021 ROCE PBIT / net assets * 100 (32,424/39,406 *100 = - 82% 102,154 / 192,758 *100 =53% Net Assets Turnover Revenue / Net Assets 526,912 / 39,406 = 13 times 214,174 / 192,758 = 1 time Gross Profit Margin Gross profit / revenue *100 97,046 / 526,912 *100 18.4% 115,462 / 214,174 * 100 54% Net Profit Before Tax PBT / revenue * 100 (35,005) / 526,912* 100 = -6.6% 104,778 / 214,174* 100 =48.9% Current Ratio Current assets / current liabilities 214,665/341,171 = 0.5 139,104 / 30,368 = 4.5 Quick Ratio Current assets – inventory / current liabilities 214,665-91,627 /341,171 = 0.4 139,104 -13,248/ 30,368 = 4.1 Inventory Days Inventory / cost of sales * 365 days 91,627/ 429,866 *365 = 77 days 13,248 / 101,397 *365 = 47 days Receivable Days Receivables / cost of sales * 365 days 24,515 / 429,866 *365 =20 days 92,860 / 101,397 *365 =334 days Payable Days…
Solution to Ratio Analysis Questions Selected ratios formulars Unilever 2021 BOPP 2021 ROCE PBIT / net assets * 100 (32,424/39,406 *100 = - 82% 102,154 / 192,758 *100 =53% Net Assets Turnover Revenue / Net Assets 526,912 / 39,406 = 13 times 214,174 / 192,758 = 1 time Gross Profit Margin Gross profit / revenue *100 97,046 / 526,912 *100 18.4% 115,462 / 214,174 * 100 54% Net Profit Before Tax PBT / revenue * 100 (35,005) / 526,912* 100 = -6.6% 104,778 / 214,174* 100 =48.9% Current Ratio Current assets / current liabilities 214,665/341,171 = 0.5 139,104 / 30,368 = 4.5 Quick Ratio Current assets – inventory / current liabilities 214,665-91,627 /341,171 = 0.4 139,104 -13,248/ 30,368 = 4.1 Inventory Days Inventory / cost of sales * 365 days 91,627/ 429,866 *365 = 77 days 13,248 / 101,397 *365 = 47 days Receivable Days Receivables / cost of sales * 365 days 24,515 / 429,866 *365 =20 days 92,860 /…
EXHIBIT 2 Selected Financial Data for Tesla, Inc., Years Ended December 31, 2015-2019 (in millions, except per share data) Income Statement Data: Revenues: Automotive sales Automotive leasing Total automotive revenues Energy generation and storage. Services and other Total revenues Cost of revenues: Automotive sales Automotive leasing Total automotive cost of revenues Energy generation and storage Services and other Total cost of revenues. Gross profit (loss) Operating expenses: Research and development Selling, general and administrative Restructuring and other Total operating expenses. Loss from operations Interest income Interest expense Other income (expense), net Loss before income taxes Provision for income taxes 2015 2 $3.432 309 3,741 14 291 4,046 Net loss Net loss attributable to noncontrolling interests and subsidiaries 2,640 183 2,823 12 287 3,123 924 7.189 922 1,640 (717) 2 (119) (42) (876) 13 $ (889) Years Ended December 31 2016 $5,589 $ 8,535 762 1.107 9,642 1.116 6,351…
EAST COAST YACHTS 2020 Income Statement Sales Cost of goods sold Selling, general, and administrative Depreciation EBIT Interest expense EBT Taxes (25%) Net income Dividends Retained earnings $550,424,000 397,185,000 65,778,000 17,963,000 $ 69,498,000 9,900,000 $ 59,598,000 14,899,500 $ 44,698,500 $ 19,374,500 25,324,000 Current assets Cash and equivalents Accounts receivable Inventory Other Total current assets Fixed assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Intangible assets and others Total fixed assets Total assets EAST COAST YACHTS 2020 Balance Sheet $ 10,107,000 16,813,300 18,135,700 1,054,900 $ 46,110,900 $412,032,000 (102,452,000) $309,580,000 6,772,000 $316,352,000 $362,462,900 Current liabilities Accounts payable Accrued expenses Total current liabilities Long-term debt Total long-term liabilities Stockholders' equity Preferred stock Common stock Capital surplus Accumulated retained earnings Less treasury stock…
Using the Du Pont Identity Method, calculate return on equity given the following information. Profit margin 16%; total asset turnover 0.85; equity multiplier 1.5. OA. OB. O C. O D. OE 20.40% 21.40% 22.40% 23.40% 24.40%