5 Table P2.5 on Page 54 summarizes the financial conditions for Kellogg Co. (K), a manufacturer and...

Question:

5 Table P2.5 on Page 54 summarizes the financial conditions for Kellogg Co. (K), a manufacturer and marketer of ready-to-eat cereal and convenience foods, for fiscal year 2009. Compute the various and interpret the firm's financial health during fiscal year 2009. The closing stock price was $44.65 on January 2, 2009 and the average number of outstanding shares was 382.5 million.
Summarize
(a) Debt ratio
(b) Times - interest - earned ratio
(c) Current ratio
(d) Quic (acid - test) ratio
(e) Inventory - turnover ratio
(f) Day's - sales - outstanding
(g) Total - assets - turnover ratio
(h) Profit margin on sales
(i) Return on total assets (with a tax rate of 40%)
(j) Return on common equity
(k) Price / earnings ratio
(l) Book value per share Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...