Perform a Du Pont analysis on BestCare

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Reference no: EM131971049

Task - Please see attachments. Must show work please

A. Perform a Du Pont analysis on BestCare. Assume that the industry average ratios are as follows:

Total margin

3.8%

Total asset turnover

2.1

Equity multiplier

3.2

Return on equity (ROE)

25.5%

B. Calculate the interpret the following ratios for BestCare:

 

Industry Average

Return on assets (ROA)

8.0%

Current ratio

1.3

Days cash on hand

41 days

Average collection period

7 days

Debt ratio

69%

Debt-to-equity ratio

2.2

Times interest earned (TIE) ratio

2.8

 Fixed asset turnover ratio

5.2

Attachment:- Assignment File.rar

Reference no: EM131971049

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