Examine the industry average ratios for the auto parts

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Reference no: EM13393740

Examine the industry average ratios for the auto parts industry, and then compare them to Parts, Inc., a fictional company in that industry. Determine if the ratios for Parts, Inc. are favorable or unfavorable, and enter your answer in the table. Indicate the significance of your ratings for Parts, Inc. in terms of the implications of the financial condition for the company. Analyze your results and discuss the financial health of the company in terms of each rations as well as an overall assessment. Ratings column Favorable/unfavorable

	Average Ratios	Parts, Inc. Ratios	Rating
Liquidity Ratios
Current Ratio	3:1	1.5:1
Quick Ratio	1.5:1	1:1

Asset Management Ratio
Inventory Turnover	7 times	5 times

Debt Management Ratio
Debt to Equity	1:2	1.5:2

Reference no: EM13393740

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