Some of the financial ratios of V, W, X, Y, and Z companies are calculated and presented in the following table.RatioVWXYZQuick Ratio4.1 times2.4 times3.9 times2.8 times3.2 timesReturn on sales12%8%10%16%14%Inventory Turnover Ratio9.7 times12.6 times10.4 times11.5 times7.8 timesDebt-to- equity Ratio0.450.640.210.360.81 You are an individual investor assessing the publicly traded companies V, W, X, Y, and Z based on their profitability. If you are to choose one of the companies to invest your money, which one would you choose? Explain your reasonYou are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for long-term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reasonYou are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for short-term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason

Financial analysis is the analysis of a corporation on the basis of the financial items that are…

Answered: Some of the financial ratios of V, W,…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.1E

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Some of the financial ratios of V, W, X, Y, and Z companies are calculated and presented in the following table.

Ratio	V	W	X	Y	Z
Quick Ratio	4.1 times	2.4 times	3.9 times	2.8 times	3.2 times
Return on sales	12%	8%	10%	16%	14%
Inventory Turnover Ratio	9.7 times	12.6 times	10.4 times	11.5 times	7.8 times
Debt-to- equity Ratio	0.45	0.64	0.21	0.36	0.81

You are an individual investor assessing the publicly traded companies V, W, X, Y, and Z based on their profitability. If you are to choose one of the companies to invest your money, which one would you choose? Explain your reason
You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for long-term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason
You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for short-term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason

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