Financial statements and industry standard ratios

Assignment Help Business Management
Reference no: EM133036177

The financial statements and industry standard ratios are listed below for a hypothetical firm.  Complete the blue section.

1) Compute the financial ratios for the firm (columns C and D).

2) Compare both 2019 and 2020 ratios to the industry standards (columns E and F). Label "Good" if the firm's ratio is favorable against the industry ratio. "Poor" if the ratio is unfavorable. See the examples in columns E and F.

3) Give a summary of the company's financial health. Is the company doing well financially? Why or why not? Use at least 3 data points to support your reasoning.

 

 

1) Ratios

2) Grade

 

Industry Standards

2019

2020

2019

2020

Liquidity ratios:

 

 

 

 

 

Current ratio

5.00 

6

4

Good

Poor

Quick ratio

3.00 

3.25

1.92

Good

Poor

 

 

 

 

 

 

Activity ratios:

 

 

 

 

 

Inventory turnover

2.20 

2.18

2.32

Poor

Good

Days sales outstanding

90.00 

0.375

0.29

 

 

Fixed asset turnover

1.00 

1200

1394.23

 

 

Total asset turnover

0.75 

0.5

0.56

 

 

 

 

 

 

 

 

Profitability ratios:

 

 

 

 

 

Gross profit margin

 

41.67%

41.38%

 

 

Operating profit margin

20%

13.17%

16.14%

 

 

Return on equity

9%

9.88%

13.76%

 

 

 

 

 

 

 

 

Leverage ratios:

 

 

 

 

 

Debt ratio

0.33 

0.083438

0.1154

 

 

 

 

 

 

 

 

Coverage ratios:

 

 

 

 

 

Times-interest-earned

7.00 

4

4.625

 

 

Reference no: EM133036177

Questions Cloud

What was the final selling price of the golf clubs : In February, a retail shop purchased golf clubs for $464 per set. The original markup was 37% based on cost. What was the final selling price of the golf clubs
What is the sampling frame in the study proposed : Problem: The Denver Police Department wants to know if Hispanic residents of Denver believe that the police use racial profiling when making traffic stops.
What would your account be worth : Question - If you deposit ?$3,500 today into an account earning an annual rate of return of 11 ?percent, what would your account be worth in 35 ?years
Minimize the total cost of waiting line system : How many tellers should be on duty in this bank branch office to minimize the total cost of this waiting line system?
Financial statements and industry standard ratios : The financial statements and industry standard ratios are listed below for a hypothetical firm. Complete the blue section.
What is the weighted-average number of shares outstanding : December 1: Reissued 5,000 shares of treasury stock. September 1: Issued a 10-for-1 stock split. What is the weighted-average number of shares outstanding
Two-factor model of motivation : Using Hertzberg Two-Factor Model of Motivation (as noted in the required course reading by Lussier, R., Achua, C. (2015). Leadership: Theory, Application, & Ski
Organizational behavior case study : Kanan is excited about his new job. He has heard that his new leader, Ann, is inspiring, visionary and forms strong relationships with her team.
Prepare a bond amortization table for the four-year period : Prepare a bond amortization table for the four-year period ended December 31, 2021. Round amounts to the nearest cent

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd