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Is management generating a substantial profit on the company

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Reference no: EM133003064

Analyze the following financial ratios, using tables and graphs where appropriate for the last 1-5 years of Berkshire Hathaway Inc. (indicate and cite the source of your information).

  1. Liquidity (current ratio, quick ratio)
  2. Operating performance ratio (days of sales in Inventory, Days of sales outstanding, Days of payables outstanding), Receivables Turnover, Inventory Turnover, Fixed Assets Turnover, Total Assets Turnover).
  3. Profitability ratios (Gross Profit Margin, Operating Profit Margin, Net Profit Margin).
  4. Return on Investment ratios: (ROA, ROE).

From the analysis of the above ratios, answer the following questios:

Problem 1). how liquid is the company- Berkshire Hathaway?

Problem 2). Is management generating a substantial profit on the company assets?

Problem 3). If the management of the company would like to improve the company's financial performance, what should the management of htis company do?

Reference no: EM133003064

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