Ratio Analysis

REQUIRED. For each of the Ratios on the list below:

$1)$ Provide a definition.

$2)$ Calculated the ratio from ABCs Financial Statements $($ABC Financial Statements on next page$).$

$3)$ Provide analysis on whether the Ratio indicates a favourable of non$-$favourable result.

Ratio List:

$1)$ Current Ratio

$2)$ Acid Test Ratio

$3)$ Average Receivables $($will have to use $2022$ & $2021)$

$4)$ Day Sales Collected

$5)$ Average Inventory

$6)$ Inventory Turnover

$7)$ Debt Ratio

$8)$ Times interest earned

$9)$ Profit Margin Ratio

$10)$ Return on Assets

Answer rating: 100% (QA)

1 Current Ratio Definition This ratio measures a companys ability to pay its shortterm obligations with its shortterm assets It is calculated by dividing current assets by current liabilities Calculat... View the full answer