Calculate and interpret the ratios

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Reference no: EM131902345

a. Perform a DU point analysis of Eldercare Inc, Assume that the industry average ratios are as follows:

Total margin 3.5%

Total asset turnover 1.5

equity multiplier 2.5

return on equity 13.1%

b. calculate and interpret the following ratios:

Industry Average

Return on Assets 5.2%

current raio 2.0

days cash on hand 22 days

days in patient acct care 19 days

debt ratio 71%

Debt to equity ratio 2.5

Times-Int-earned-ratio 2.6

Fixed asset turnover rato 1.4

Reference no: EM131902345

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