How liquid is the company

Assignment Help Financial Accounting
Reference no: EM132472488

Question 1: How liquid is the company?

Question 2: Is management generating a substantial profit on the company's assets?

Question 3: If the management of the company would like to improve the company's financial performance, what should the management of THE COMPANY do?

Question 41: Also, what specific recommendation with supporting rationale would you recommend. as to whether the assigned company's recent trends and results in financial performance is of sufficient financial strength, will THE COMPANY be financially sustainable over the next two to three years, and which steps should be done to improve its financial stability?

Key

 

 

 

 

 

 

 

 

 

 

Profitability

Growth

Cash Flow

Financial Health

Efficiency Ratios

2011-12             2012-12

2010-12

Efficiency

2009-12

 

2013-12

2014-12

2015-12

2016-12

2017-12

2018-12

T114

Days Sales Outstanding

40.33

42.55                     36.66                              36.79                              37.52

37.05

34.64

33.99

38.77

40.46

43.80

Days Inventory

74.74

71.95                     57.53                              60.88                              64.80

65.06

62.66

61.82

73.38

84.06

83.64

Payables Period

Cash Conversion Cycle

Receivables Turnover

 

45.76

 

47.40

40.67                                 39.66                                          38.66

41.03

50.99

60.71

68.42

74.21

323.48

 

69.31

67.09

53.52                                         58.00                                                             63.66

61.08

46.31

35.10

43.73

50.31

-196.04

 

9.05

8.58               9.96               9.92                      9.73

9.85

10.54

10.74

9.41

9.02

8.33

Inventory Turnover

4.88
3.47
0.69

5.07               6.34               6.00                      5.63

5.61

5.83

5.90

4.97

4.34

4.36

Fixed Assets Turnover

2.89               3.14               3.26                      3.18

3.11

3.26

3.61

3.76

3.88

3.55

Asset Turnover

0.58               0.61               0.57                      0.53

0.51

0.49

0.47

0.40

0.37

0.39

 

 

1 OS

 

 

 

1.34

1.05

 

 

 

 

Liquidity/Financial Health

2009-:2

2C1-12

2011-12

2012-12

2013-12

2C14-12

2:15-12

2016-12

2017-12

2018-12

Latest Qtr

 

Current Ratio

1.28

1.17

1.05

1.09

1.13

1.02

1.24

1.28

1.34

1.05

0.92

 

Quick Ratio

0.95

0.85

0.78

0.77

0.90

0.81

0.89

0.98

0.90

0.66

0.69

er

Financial Leverage

1.96

2.35

2.53

2.63

2.71

3.04

3.53

3.78

5.15

4.90

4.67

 

Debt/Equity

0.20

0.45

0.43

0.45

0.58

0.63

1.11

1.29

1.83

1.49

1.71

 

Profitability

2009-12

2010-12

2011-12

2012-12

2013-12

2014-12

2015-12

2016-12

2017-12

2018-12

TIM

Tax Rate %

22.80

16.74

24.52

23.06

24.84

23.60

23.31

19.49

82.47

19.44

14.36

Net Margin 'Ye

22.02

33.63

18.42

18.78

18.32

15.43

16.60

15.59

3.52

20.20

23.09

Asset Turnover (Average)

0.69

0.58

0.61

0.57

0.53

0.51

0.49

0.47

0.40

0.37

0.39

Return on Assets %

15.30

19.42

11.21

10.86

9.74

7.80

8.07

7.36

1.42

7.52

8.89

Financial Leverage (Average)

1.96

2.35

2.53

2.63

2.71

3.04

3.53

3.78

5.15

4.90

4.67

Return on Equity %

30.15

42.32

27.37

28.00

26.03

22.36

26.31

26.85

6.22

37.79

41.91

Return on Invested Capital %

20.79

26.69

14.87

14.27

12.58

9.86

10.63

9.53

2.02

10.58

12.79

Interest Coverage

26.20

20.43

28.43

30.75

25.79

20.31

12.22

12.10

9.02

10.09

11.13

Reference no: EM132472488

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