How well is profit being generated from company assets

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Question: Complete a ratio analysis for THE COMPANY. Please remember that you are the financial analyst of THE COMPANY and should prepare the report to be read by the chairman/CEO of THE COMPANY. The ratio analysis should be completed from the point of view of company management.

The chairman of THE COMPANY is especially concerned about the following groups of ratios:

Liquidity (current ratio, quick ratio, and net working capital-to-sales ratio)

Operating performance ratio turnovers (Days of Sales in Inventory, Days of Sales in Receivables)

Profitability ratios (Gross Profit Margin, Operating Profit Margin, Net Profit Margin)

Return on Investment ratios (Basic Earning Power ratio, ROA, ROE)

You can find financial ratios for the company for the last three years on the financial websites or calculate them. If you use published ratios please provide your source.

Create a table presenting these ratios, and provide graphs to illustrate three year trends for some of them. You can choose a few ratios of interest to graph, you don't have to graph every one provided.

Write an analysis of the ratio results that you found. In your analysis you should answer the following questions:

How liquid is the company?

How well is profit being generated from company assets?

What can management do to improve financial performance?

Reference no: EM132172389

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