Question: Jeff Smith realizes that the first thing he must do is compare the liquidity, leverage, activity, and profitability ratios of the two companies. Using the

Jeff Smith realizes that the first thing he must do is compare the liquidity, leverage, activity, and profitability ratios of the two companies. Using the income statement and balance sheet data shown in Tables 1 €“ 4, prepare a detailed comparison report indicating the strengths and weaknesses of each company.

Duralex APEX 2015 2015 LIQUIDITY Current Ratio 1.30 1.63 Quick Ratio 0.79 0.91 Cash Ratio 0.05 0.01 LEVERAGE Total Debt

Duralex APEX 2015 2015 LIQUIDITY Current Ratio 1.30 1.63 Quick Ratio 0.79 0.91 Cash Ratio 0.05 0.01 LEVERAGE Total Debt Ratio 1.05 0.54 1.19 Debt-Equity Ratio Equity Multiplier -19.33 -18.33 2.19 COVERAGE Times Interest Ratio 0.76 4.67 Cash Coverage Ratio 1.58 6.57 ASSET MANAGEMENT Inventory Turnover ratio Day's sales in Inventory 8.11 6.40 45.01 57.00 Receivables Turnover 6.44 6.91 Days' Sales in Receivables 56.65 52.86 Total Asset Turnover 1.12 1.37 0.73 Capital Intensity 0.89 PROFITABILITY Profit Margin -24% 5.91% ROA -27% 8.10% ROE NMF 17.76%

Step by Step Solution

★★★★★

3.51 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Looking at 2015 ratios APEX has a much better liquidity leverage and profitab... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Case Studies Finance Questions!

Scenario: Steve Smith was recently hired as a controller for a chocolate bar manufacturing plant in the United States that is a division of a Swiss parent company. Steve is a direct report to the...

Writing Improvement Exercise: Lists, Bullets, and Headings Your Task. Revise the following sentences and paragraphs using techniques presented in this chapter. Improve parallel construction and...

Writing Improvement Exercises: Bulleted and Numbered Lists a. Use the following wordy instructions to compose a concise bulleted vertical list with an introductory statement: To write information for...

1. Jeff Smith realizes that the first thing he must do is compare the liquidity, leverage, activity, and profitability ratios of the two companies. Using the income statement and balance sheet data...

DuPont Analysis: Playing the Numbers Game! "Numbers! I need to see numbers!" exclaimed Marcus in response to comments made by the assistant vice-president of Finance, Jeff Smith. Marcus Lenovo, the...

Please provide the calculations on excel or word file along with the solution Research paper on Apple INC. The paper should be approximately 7 - 10 pages (12 - font, double-spaced) in length. Proper...

Go towww.cnbc.comand explore the video tab in the top banner menu. In the search box, enter the key terms reporting and estimate in separate searches. As you learned in this unit, there are various...

Hello. Can you help with this four question problem? Case PRIVATE EQUITY CASE: MERGER CONSOLIDATION The questions below COMBINE the Ohio & Maryland PT acquisitions as if they are a single c Learning...

Prepare the financial analysis to support your decision between bankruptcy,voluntary reorganization,and Chapter11reorganization.It must be complete and prepared in a professional level,with the...

Q1-Explain how the EBIT Chart works (inputs determining the outputs-the two lines on the chart Case Leahy Bread Company (LBC) in Cohen Finance Workbook, page 111( a 'caselette') SEE THE IS/BS MODEL &...

On January 1, 2022, Haze Company had capitalized costs for a new computer software product with an economic life of 5 years. Sales for 2022 were 30 percent of expected total sales of the software....

Use Data File CEOtime to answer and present the following information. Please attached a Word Document and the Excel file used to create the needed information. In a Student of How Chief Executive...

Use the following information to determine the break - even point in sales dollars: Unit sales 4 6 , 0 0 0 UnitsDollar sales$ 4 6 0 , 0 0 0 Fixed costs$ 1 9 9 , 0 0 0 Variable costs$ 1 7 2 , 5 0 0...

What is going on in this case?

1. Why is it important to estimate a firms cost of capital? What does it represent? Is the WACC set by investors or by managers? 2. What was your estimate of WACC? What mistakes did Joanna Cohen make...

1. What is the current situation? Why did the company run out of cash? What are the consequences for the company? 2. What does Maliks financial forecast show? How was the forecast constructed? 3....

1. Who deserves the Management of the Year award in the retail building-supply industry? 2. How does the Home Depot forecasting model work? Why do we use ratios to forecast financial statements? 3....

urgent help plese \f

Hi, need help with the following question, Topic: Hypothesis Testing, Comparing Two Population Means A researcher wants to perform a hypothesis test to see if the mean salary of the faculty in...

In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund Rates of return on the market Index are given for comparison. 1 2 5...