For Financial year 2021: Current ratio = Current assets / Current liabilities = 43.133 / 29.613 = 1.46 (2.d.p) Debt-to-equity = Total liabilities / Total equity = (29.613 + 25.382) / 47.069 = 1.17 (2.d.p) Return on total assets = Net profit / Average total assets = (-11.195) / 101.964 = -0.11 (2.d.p) Profit margin ratio = Net profit / Net sales = (-11.195) / 81.79 = -0.14 (2.d.p) Debt-to-asset = Total liabilities / Total assets = (29.613 + 25.382) / 101.964 = 0.54 (2.d.p) Cash flow on total assets = Net cash flow from operating activities / Average total assets = 4.717 / 101.964 = 0.05 (2.d.p) For Financial year 2022: Current ratio = Current assets / Current liabilities = 49.476 / 32.754 = 1.51 (2.d.p) Debt-to-equity = Total liabilities / Total equity = (32.754 + 27.625) / 46.732 = 1.29 (2.d.p) Return on total assets = Net profit / Average total assets = (-0.336) / 107.111 = -0.003 (3.d.p) Profit margin ratio = Net profit / Net sales = (-0.336) / 115.56 = -0.003 (3.d.p) Debt-to-asset = Total liabilities / Total assets = (32.754 + 27.625) / 107.111 = 0.56 (2.d.p) Cash flow on total assets = Net cash flow from operating activities / Average total assets = 20.53 / 107.111 = 0.19 (2.d.p) Conclude whether the company is a good investment option based on the analysis conducted above

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 4MC: Calculate the 2019 debt ratio, liabilities-to-assets ratio, times-interest-earned ratio, and EBITDA...

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For Financial year 2021:

Current ratio = Current assets / Current liabilities = 43.133 / 29.613 = 1.46 (2.d.p)

Debt-to-equity = Total liabilities / Total equity = (29.613 + 25.382) / 47.069 = 1.17 (2.d.p)

Return on total assets = Net profit / Average total assets = (-11.195) / 101.964 = -0.11 (2.d.p)

Profit margin ratio = Net profit / Net sales = (-11.195) / 81.79 = -0.14 (2.d.p)

Debt-to-asset = Total liabilities / Total assets = (29.613 + 25.382) / 101.964 = 0.54 (2.d.p)

Cash flow on total assets = Net cash flow from operating activities / Average total assets = 4.717 / 101.964 = 0.05 (2.d.p)

For Financial year 2022:

Current ratio = Current assets / Current liabilities = 49.476 / 32.754 = 1.51 (2.d.p)

Debt-to-equity = Total liabilities / Total equity = (32.754 + 27.625) / 46.732 = 1.29 (2.d.p)

Return on total assets = Net profit / Average total assets = (-0.336) / 107.111 = -0.003 (3.d.p)

Profit margin ratio = Net profit / Net sales = (-0.336) / 115.56 = -0.003 (3.d.p)

Debt-to-asset = Total liabilities / Total assets = (32.754 + 27.625) / 107.111 = 0.56 (2.d.p)

Cash flow on total assets = Net cash flow from operating activities / Average total assets = 20.53 / 107.111 = 0.19 (2.d.p)

Conclude whether the company is a good investment option based on the analysis conducted above

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