The table below shows the ratios for three companies: airline, discount clothing store, accounting firm. COMPANY 1 2 3 Debt-equity 0.2 1.2 0.7 Inventory Turnover 12.0 0.3 Current Ratio 2.5 1.5 1.3 Sales/Total Assets 4.0 1.7 7.0 - Total Asset Turnover Sales/Receivables 40.0 12.3 7.2 AR Turnover Interpret the ratios in the table to identify the three (3) firms and briefly discuss your reasons using the following format: Company (Number) is the Reason:

The table below shows the ratios for three companies: airline, discount clothing store, accounting firm. COMPANY 1 2 3 Debt-equity 0.2 1.2 0.7 Inventory Turnover 12.0 0.3 Current Ratio 2.5 1.5 1.3 Sales/Total Assets 4.0 1.7 7.0 - Total Asset Turnover Sales/Receivables 40.0 12.3 7.2 AR Turnover Interpret the ratios in the table to identify the three (3) firms and briefly discuss your reasons using the following format: Company (Number) is the Reason:

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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find one financial report for a company listed in bursa malaysia and find CURRENT RATIO,QUICK RATIO ,NET PROFIT MARGIN,RETURN ON ASSSET,INVENTORY TURNOVER,RECIEVABLE TURNOVER,DEBT RATIO,DEBT TO EQUITY
The table below shows the ratios for three companies: airline, discount clothing store, accounting firm. COMPANY 1 2 3 Debt-equity 0.2 1.2 0.7 Inventory Turnover 12.0 0.3 Current Ratio 2.5 1.5 1.3 Sales/Total Assets 4.0 1.7 7.0 Sales/Receivables 40.0 12.3 7.2 Interpret the ratios in the table to identify the three (3) firms and briefly discuss your reasons using the following format: Company (Number) is the Reason: Briefly discuss two (2) reasons why it is difficult to use ratios to compare firms from different countries. Briefly discuss the basis for Mogdiliani and Miller (MM) to claim in their Proposition 1 that capital structure does not matter.
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The following financial ratios have been calculated for Nova Ltd for the year ended 30 June 2008:Ratio ActualresultsBudgetedresultsPreviousyearIndustry AverageCurrent ratio 1.97 1.92 1.87 1.92Quick asset ratio 1.06 1.06 1.06 1.11Inventory turnover 4.21 4.91 4.86 4.76Net profit ratio 0.05 0.03 0.03 0.03Gross margin 0.65 0.59 0.61 0.61Required:Provide four (4) possible explanations for the results of the various ratios for Nova Ltd and explaintheir implications for the audit.
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