Analyze the ratios from exhibit 5 in the case. Comment on ratio performance as it relates to Q1 and
Q2 for each category:
i. Profitability
ii. Liquidity
iii. Efficiency
iv. Stability
v. Growth

You require comments for each category (not necessarily each ratio). Each category comment is worth two marks. It should interpret the result (changes quarter to quarter) and the meaning of the result. 

 

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11! A PDE 9B20N021_pcu.pdf X + File C:/Users/das_w/Desktop/Financial%20Management/Case/9B20N021_pcu.pdf Import favorites M Gmail YouTube B ✓ Draw Maps G FO Week 2 - The good... S 7021 - Fanshawe -... ASUS E-Service [T] Read aloud Ask Copilot + 7 of 8 This file has limited permissions. You may not have access to some features. View permissions Type here to search רך Εί Page 7 EXHIBIT 5: SELECTED FINANCIAL RATIOS Profitability Return on Equity Liquidity Current Ratio Q2 Q1 2.5% N/A 2.40:1 1.35 1 1.88 1 0.93: 1 Acid Test Efficiency* Age of Receivables 12 days 15 days Age of Inventory 15 days 8 days Age of Payables 20 days 16 days Stability Net Worth to Total Assets 95.4% 95.6% Interest Coverage N/A N/A Growth Sales 211.4% Net Income Equity Total Assets N/A 2.5% 2.7% Note: *To account for quarterly financial data, all efficiency ratios used 91 days rather than 365 days. Source: Company files. ]' Π O 9B20N021 oore in FINA-7006-(01)-23F at Fanshawe College from 9/5/2023 to 12/16/2023. outside these parameters is a copyright violation. -3°C Cloudy { 0 0 1 Q < 6 6 Other favorites ✗ › ENG 12:00 AM 11/25/2023 | A ندا & × 11! A PDE 9B20N021_pcu.pdf X + File C:/Users/das_w/Desktop/Financial%20Management/Case/9B20N021_pcu.pdf Import favorites M Gmail YouTube B ✓ Draw Maps G FO Week 2 - The good... S 7021 - Fanshawe -... ASUS E-Service [T] Read aloud Ask Copilot + 7 of 8 This file has limited permissions. You may not have access to some features. View permissions Type here to search רך Εί Page 7 EXHIBIT 5: SELECTED FINANCIAL RATIOS Profitability Return on Equity Liquidity Current Ratio Q2 Q1 2.5% N/A 2.40:1 1.35 1 1.88 1 0.93: 1 Acid Test Efficiency* Age of Receivables 12 days 15 days Age of Inventory 15 days 8 days Age of Payables 20 days 16 days Stability Net Worth to Total Assets 95.4% 95.6% Interest Coverage N/A N/A Growth Sales 211.4% Net Income Equity Total Assets N/A 2.5% 2.7% Note: *To account for quarterly financial data, all efficiency ratios used 91 days rather than 365 days. Source: Company files. ]' Π O 9B20N021 oore in FINA-7006-(01)-23F at Fanshawe College from 9/5/2023 to 12/16/2023. outside these parameters is a copyright violation. -3°C Cloudy { 0 0 1 Q < 6 6 Other favorites ✗ › ENG 12:00 AM 11/25/2023 | A ندا & ×

Answer rating: 100% (QA)

i Profitability In terms of profitability there is an improvement from Q1 to Q2 The profit margin increased from 25 in Q1 to an unknown value in Q2 wh... View the full answer