Suppose you are conducting an analysis of the financial performance of Blue Hamster Manufacturing Inc. over the past three years. The company did not issue new shares during these three years and has faced some operational difficulties. The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company’s relevant financial data, made reasonable assumptions based on the information available, and calculated the following ratios.   Ratios Calculated   Year 1 Year 2 Year 3 Price-to-cash-flow 6.40 8.32 9.32 Inventory turnover 12.80 15.36 17.20 Debt-to-equity 0.20 0.21 0.25   Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply.   A. The company’s creditworthiness has improved over these three years as evidenced by the increase in its debt-to-equity ratio over time.   B. Blue Hamster Manufacturing Inc.’s ability to meet its debt obligations has worsened since its debt-to-equity ratio increased from 0.20 to 0.25.   C. An improvement in the inventory turnover ratio could likely be explained by the new sales-forecasting strategies that led to better inventory management.   D. The market value of Blue Hamster Manufacturing Inc.’s common shares declined over the three years.

A company has been in business for a number of years. Merkel has the following financial ratios: return on equity (ROE) = 85%Net profit margin= 19%total asset turnover= 4.9earnings quality= 0.5debt-to-equity ratio= 4.2 question: Prepare an analysis of this company. Discuss and interpret the financial ratios above. what at the strengths AND weaknesses of the company? are there any troubling signs?

1. The person in charge of the finances of the company MGT, S.A. wants to know the company's situation concerning the industrial sector to which it belongs. For this, it has the following information regarding the industry: General liquidity ratio is 1.55; the acid test is 1.20, and the ratio between the available and the current liabilities is 0.95. The debt ratio stands at 1.25. The margin on sales is 21%. The investment rotation is 1.45 times. Economic profitability is around 23%, and financial profitability is 29% The data referred to the company (in thousands of €) are the following:   Assets Liability and Net Equity Non-current asset (net) 170 Equity 125 Stocks of finished products   45 Reservations 25 Clients 65 External Resources 105 Banks 70 Loans 65     Supplier 30 Total Assets 350 Total Net Equity 350   In addition, it is known that: Sales are € 250,000 and its direct cost of € 105,000. Amortization of…

you have developed the following pro forma income statement for your? corporation: it represents the most recent? year’s operations, which ended yesterday. a.if sales should increase by 25 ?percent, by what percent would earnings before interest and taxes and net income? increase? b.if sales should decrease by 25 ?percent, by what percent would earnings before interest and taxes and net income? decrease? q c.if the firm were to reduce its reliance on debt financing such that interest expense were cut in? half, how would this affect your answers to parts a and b?? sales $ 45,750,000 variable costs -22,800,000 revenue before fixed costs $ 22,950,000 fixed costs -9,200,000 ebit $ 13,750,000 interest expense -1,350,000 earnings before taxes $ 12,400,000 taxes (50%) -6,200,000 net income $ 6,200,000

Give your thoughts on the prompts below  Firms use market capitalization when considering the market value added. We have seen that a number of things can affect capitalization values, so is this really the best method to use?   A well known company recently had  a 20-1 stock split that drew a lot of attention...how does this affect their market value added? Administrative errors can have a big impact in receivables turnover and payment delay ratios, so companies should include administrative and other indirect costs in the calculations of those ratios. Agree or Disagree and defend your answer.

Compute the following profitability ratios of the company for the most recent two years, show all values in the computations: 1.Asset Turnover 2.Profit margin ratio(Net Income/Net Sales) 3.Return on total assets (Net Income/Average Total Assets) 4.Return on stockholders’ equity 5.Basic Earnings per share (EPS) Based on the results above, what conclusions can you make about the company’s overall profitability and efficient use of assets?

You observe that a firm's ROE has increased from the previous year, but both its profit margin and equity multiplier are below the previous year's levels. Which of the following statements is CORRECT?   Its return on assets must be lower than the previous year. Its total assets turnover must be lower than the previous year. Its TIE ratio must be higher than the previous year. Its total assets turnover must be higher than the previous year.

A firm's current ratio is above the previous year; however, the firm's quick ratio is below the previous year. What do these ratios suggest about the firm? Has relatively more total current assets and even more inventory than the previous year Is very efficient at managing inventories in the current year Has liquidity that is superior to the average firm in the industry None of these is correct