Compute the solvency ratios

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Reference no: EM132480010

Use the 'Company Search' to locate your company. Then, enter '10-K' in the 'Filing Type' box to find the latest filing.

Read the 10-K and use it to calculate the following ratios. Be sure to clearly label and show your calculations and reference the information from the 10-K

Question A) Compute the following liquidity ratios for your selected company

Current ratio
Accounts receivable turnover
Average collection period
Inventory turnover (if the company does not have inventory, note and skip)
Days in inventory (if the company does not have inventory, note and skip)
Current cash debt coverage

Question B) Compute the following solvency ratios for your selected company:

Debt to asset ratio
Times interest earned
Cash debt coverage
Free cash flow

Question C) Compute the following profitability ratios for your selected company:

Profit margin
Asset turnover
Return on assets
Return on common stockholders' equity.

Question D) Interpret your findings for the ratio comparatives analysis your selected company.

Question E) Evaluate what, if any, options with regard to financial activities your company should consider (i.e., how can the company improve financial performance)? What impact would each of these have on the above ratios?

Reference no: EM132480010

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