Great Lakes is an internationally operating apparel manufacturer, specialized in the woven garment sector that offer expertise in the production of outerwear and bottoms, washing, dyeing, woven/knit hybrid garments, down and wellon filling and denim. Attached the Financial ratios of Great lakes in 2016 to 2019. Based on the Financial ratios attached, please analyse the Great Lakes Financial Report.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Great Lakes is an internationally operating apparel manufacturer, specialized in the woven garment sector that offer expertise in the production of outerwear and bottoms, washing, dyeing, woven/knit hybrid garments, down and wellon filling and denim.

Attached the Financial ratios of Great lakes in 2016 to 2019.

Based on the Financial ratios attached, please analyse the Great Lakes Financial Report.

FINANCIAL RA TIO CALCULATION
2019
2018
2017
2016
Working Capital
Turnover
9
21.11
38.71
53.63
63.03
A
10
Inventory Turnover
12.80
11.81
15.84
15.56
CR
TA
I T
11
Assets Turnover
2.50
2.23
1.98
2.20
VI
TS
12
Receivable Turnover
14.30
13.27
17.24
16.94
Y
Average Collection
Period
13
25.53
27.51
21.17
21.55
14
Net Profit Margin
2.19%
2.09%
2.06%
2.07%
15
Gross Profit Margin
10.44%
11.02%
8.13%
8.10%
16
Operating Margin
2.86%
2.77%
2.85%
2.70%
17
Return on Assets (ROA)
5.49%
4.66%
4.10%
4.56%
18
Return on Equity (ROE)
11.60%
15.43%
9.56%
10.19%
Basic Earning Power
19
0.07
0.06
0.06
0.06
Ratio
RAT- OS
PROF -TABI L -TY
Transcribed Image Text:FINANCIAL RA TIO CALCULATION 2019 2018 2017 2016 Working Capital Turnover 9 21.11 38.71 53.63 63.03 A 10 Inventory Turnover 12.80 11.81 15.84 15.56 CR TA I T 11 Assets Turnover 2.50 2.23 1.98 2.20 VI TS 12 Receivable Turnover 14.30 13.27 17.24 16.94 Y Average Collection Period 13 25.53 27.51 21.17 21.55 14 Net Profit Margin 2.19% 2.09% 2.06% 2.07% 15 Gross Profit Margin 10.44% 11.02% 8.13% 8.10% 16 Operating Margin 2.86% 2.77% 2.85% 2.70% 17 Return on Assets (ROA) 5.49% 4.66% 4.10% 4.56% 18 Return on Equity (ROE) 11.60% 15.43% 9.56% 10.19% Basic Earning Power 19 0.07 0.06 0.06 0.06 Ratio RAT- OS PROF -TABI L -TY
FINANCIAL RATIO CALCULATION
2019
2018
2017
2016
1
Current Ratio
152.02%
120.00%
111.15%
91.51%
L
Cash Ratio
18.56%
5.66%
62.53%
47.24%
3
Quick Ratio
53.73%
48.09%
71.27%
56.37%
Net Working Capital
4
11.86%
5.75%
3.70%
-3.49%
Ratio
5
Debt Ratio
52.69%
69.80%
57.16%
55.24%
S
OR
LA
6
Debt to Equity Ratio
63.17%
135.89%
55.96%
31.71%
VT
E I
NO
7
Equity Ratio
47.31%
30.20%
42.84%
44.76%
Cs
Y
Interest Coverage Ratio
211.96%
66.61%
230.68%
402.79%
RAT- O 0
Transcribed Image Text:FINANCIAL RATIO CALCULATION 2019 2018 2017 2016 1 Current Ratio 152.02% 120.00% 111.15% 91.51% L Cash Ratio 18.56% 5.66% 62.53% 47.24% 3 Quick Ratio 53.73% 48.09% 71.27% 56.37% Net Working Capital 4 11.86% 5.75% 3.70% -3.49% Ratio 5 Debt Ratio 52.69% 69.80% 57.16% 55.24% S OR LA 6 Debt to Equity Ratio 63.17% 135.89% 55.96% 31.71% VT E I NO 7 Equity Ratio 47.31% 30.20% 42.84% 44.76% Cs Y Interest Coverage Ratio 211.96% 66.61% 230.68% 402.79% RAT- O 0
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