Question

Using the 2011 income statement and balance sheet of Trimark Products Inc., as constructed in problems 1 and 2 above, compute its financial ratios. How is the firm doing relative to its industry in the areas of liquidity, asset management, leverage, and profitability?
Ratio .......... Industry Average
Current Ratio ............ 2.200
Quick Ratio (or Acid Test Ratio) ..... 1.500
Cash Ratio ............. 0.135
Debt Ratio ............. 0.430
Cash Coverage ........... 10.600
Day’s Sales in Receivables ....... 29.000
Total Asset Turnover ......... 2.800
Inventory Turnover .......... 20.100
Day’s Sales in Inventory ....... 11.500
Receivables Turnover ......... 32.000
Profit Margin ............ 0.045
Return on Assets .......... 0.126
Return on Equity .......... 0.221



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  • CreatedMay 08, 2014
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