Reference no: EM132651971
A company has the following ratios:
Current ratio: 2.1 to 1.0
Accounts receivable turnover ratio. 350 to 1
Debt/ equity ratio. 20.0 to 1
Interest coverage ratio 7.0 to 1
Inventory turnover ratio 9.0 to 1
A company has the following ratios:
Current ratio: 4.1 to 1.0
Accounts receivable turnover ratio. 8 to 1
Debt/ equity ratio. 4.0 to 1
Interest coverage ratio 9.0 to 1
Inventory turnover ratio 8.0 to 1
Question 1: Based on the above items, compare and contrast the ratios between the company and the industry. Please analyze reasons why there could be differences and the overall financial position of the company.
Question 2: what of the ways the company could finance the company without significant negative changes to the above financial metrics (ratios)?