$1.$ RATIO ANALYSIS

You will need to know the formula for each ratio, how to interpret each ratio, and have each ratio computed for $138$ Student Living Inc. annual financial data. If you cannot compute a certain ratio, please state why.

a$.$ Profitability ratios:

i$.$ Gross profit margin

Ratio formula:

How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

ii$.$ Return on assets

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How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

iii. Return on equity

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How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

b$.$ Liquidity ratios:

i$.$ Current Ratio

Ratio formula:

How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

ii$.$ Quick Ratio

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How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

iii. Inventory to Net Working Capital

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How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

c$.$ Leverage ratios:

i$.$ Debt to Assets Ratio

Ratio formula:

How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

ii$.$ Debt to Equity Ratio

Ratio formula:

How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

iii. Times Interest Earned Ratio

Ratio formula:

How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

d$.$ Activity Ratios:

i$.$ Inventory Turnover

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How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

ii$.$ Fixed Assets Turnover

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How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

iii. Total Assets Turnover

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How to assess this ratio:

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What trend is represented?

iv$.$ Accounts Receivable Turnover

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How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

v$.$ Average Collection Period

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How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

e$.$ Other Operating Ratios:

i$.$ Advertising Intensity

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How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

ii$.$ Capital Intensity

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How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

iii. Plant and equipment Newness

Ratio formula:

How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

iv$.$ R&D Intensity

Ratio formula:

How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

v$.$ Overhead Inefficiency

Ratio formula:

How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

f$.$ Market Ratio:

i$.$ Price Earnings Ratio

Ratio formula:

How to assess this ratio:

Compute $138$ Student Living Inc. ratio for $2021$ and $2022.$

What trend is represented?

Vertical Analysis of $138$ Student Living Inc..:

$4.$ For $2021$ and $2022,$ compute the following percentages:

a$.$ COGS to sales

b$.$ S$,$G$,$ & A expense to sales

c$.$ Interest expense to sales

d$.$ Net plant & equipment to total assets

e$.$ Cash to total assets

f$.$ AR to total assets

g$.$ Inventory to total assets

h$.$ AP to total assets

i$.$ L$-$T debt to total assets

j$.$ Stockholders equity to total assets

k$.$ Total liabilities to total assets

l$.$ Payout ratio

m$.$ Gross profit rate

n$.$ Free cash flow

o$.$ Assess how the company has changed. What conclusions can you draw from this information about $138$ Student Living Inc. strategy?

$5.$ What conclusions can you draw from all of these analyses combined?