Examine the industry average ratios for the auto parts

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

Questions Cloud

What role does supply chain management play for : 1. what role does supply chain management play for organizations seeking to gain the competitive advantage? would it be

A managementrsquos game plan for competing successfully : question 1.which of the following is not an action that a company can take to do a better job than rivals of performing

Write down the production-planning strategies and how might : what enterprise resource planning erp systems does your organization rely on? choose an erp system and discuss why you

Suppose constantnbsp total costs suggest the price change : calculate the following elasticity coefficient. interpret the coefficient fully. nextnbsp graph this price and quantity

Examine the industry average ratios for the auto parts : examine the industry average ratios for the auto parts industry and then compare them to parts inc. a fictional

Explain how could goldratts theory of constraints be : how could goldratts theory of constraints be used to improve a process in your own organization? how could you utilize

Your competitors sell the tablet for 4120 and you must : you own and operate a chain of electronic stores in texas and you are considering expanding your inventory to include

Cmpare major functions of accountant to that of certified : accounting increases a students preparedness to understand complex business concepts and the rationale managers use to

An agent spends about 6 minutes per customer exponentially : an airline ticket counter has one line feeding into 2 ticket agents. the airline is considering adding a third agent.

User Account

All Pages