Ratio Analysis Problems
Autor: ashishmanoj97 • June 9, 2016 • Coursework • 1,433 Words (6 Pages) • 726 Views
Financial Analysis Project
2013 | 2014 | 2015 | Industry Average | |
Liquidity | ||||
Current Ratio | 3.07 | 2.68 | 1.75 | 2.5 |
Quick Ratio | 1.66 | 1.08 | 0.73 | 1.0 |
Asset Management | ||||
Average Collection Period | 36.5 days | 36.5 days | 54.7 days | 32 days |
Inventory Turnover | 9.03 | 5.59 | 4.19 | 7.0 |
Fixed Asset Turnover | 11.58 | 11.95 | 12.10 | 12.0 |
Debt Management | ||||
Total Debt to Total Assets | 40% | 46% | 60% | 50.0% |
Times Interest Earned | 33.3 | 7.97 | 1.49 | 7.7 |
Profitability | ||||
Profit Margin | 5.7% | 3.44% | 0.38% | 2.9% |
Return on Equity (ROE) | 29.24% | 16.69% | 1.95% | 17.5% |
- Use the ratios to comment on ABC’s liquidity, efficiency, leverage and profitability. Your analysis must comment on ABC’s trending and also include your observations on how ABC compares to other companies in the toy industry.
Looking at rations, we split them into categories of profitability ratios, leverage, liquidity ratios and efficiency ratios. In order to analyze ABC, we will first look at it’s profitability ratios.
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