Base on this financial ratios, what are your conclusions and recommendations for the company

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Base on this financial ratios, what are your conclusions and recommendations for the company

 

COMPANY B
RATIO
2019
2018
Liquidity
1Current Ratio
1.03
1.66
2 Quick Ratio
0.77
1.05
Profitability
3 ROE
17.07%
18.40%
4 ROA
5 GPM
6 OPM
7 NPM
7.02%
8.73%
29.28%
28.76%
16.51%
15.92%
10.50%
11.10%
Leverage
8 Debt Ratio
0.59
0.53
9 Debt to Equity Ratio
10 Time Interest Earned Ra
Efficiency
11 A/R Turnover Ratio
12 Average Collection Perid
13 Inventory Turnover Ratid
14 Average Age of Inventor
15 Accounts Payable Ratio
16 Average Age of Payable
17 Operating Cycle
18 Cash Conversion Cycle
1.43
1.11
3.56
5.74
17.99
39.08
20
9
12.21
9.04
29
40
13.26
13.30
27
27
49
49
22
22
19 Total Asset Turnover Rat
20 Fixed Asset Turnover Ra
0.67
0.79
5.10
4.43
Transcribed Image Text:COMPANY B RATIO 2019 2018 Liquidity 1Current Ratio 1.03 1.66 2 Quick Ratio 0.77 1.05 Profitability 3 ROE 17.07% 18.40% 4 ROA 5 GPM 6 OPM 7 NPM 7.02% 8.73% 29.28% 28.76% 16.51% 15.92% 10.50% 11.10% Leverage 8 Debt Ratio 0.59 0.53 9 Debt to Equity Ratio 10 Time Interest Earned Ra Efficiency 11 A/R Turnover Ratio 12 Average Collection Perid 13 Inventory Turnover Ratid 14 Average Age of Inventor 15 Accounts Payable Ratio 16 Average Age of Payable 17 Operating Cycle 18 Cash Conversion Cycle 1.43 1.11 3.56 5.74 17.99 39.08 20 9 12.21 9.04 29 40 13.26 13.30 27 27 49 49 22 22 19 Total Asset Turnover Rat 20 Fixed Asset Turnover Ra 0.67 0.79 5.10 4.43
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education