A manufacturing company's financials reveal the following ratios: Ratio/Calculation 2016 2015 2014 2013 2012 Industry Ave. Day's
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A manufacturing company's financials reveal the following ratios: | |||||||
Ratio/Calculation | 2016 | 2015 | 2014 | 2013 | 2012 | Industry Ave. | |
Day's Sales In Receivables (days) | 44 | 45 | 31 | 30 | 30 | 29 | |
Day's Sales In Inventory (days) | 68 | 69 | 78 | 77 | 78 | 60 | |
Current Ratio | 2.7 | 2.8 | 2.4 | 2.5 | 2.5 | 2.2 | |
Acid Test (Quick) Ratio | 2.1 | 2.1 | 1.9 | 1.8 | 1.8 | 1.9 | |
Debt Ratio | 40.0% | 42.0% | 46.0% | 45.0% | 45.0% | 52.0% | |
Times Interest Earned | 7.1 | 7.1 | 7.1 | 6.9 | 6.9 | 7.1 | |
Fixed Charge Coverage | 5.4 | 5.4 | 5.9 | 6.9 | 6.9 | 6.5 | |
Gross Profit Margin | 42.0% | 41.0% | 42.0% | 43.0% | 42.0% | 40.0% | |
Operating Profit Margin | 17.0% | 18.0% | 18.0% | 21.0% | 21.0% | 20.0% | |
Net Profit Margin | 5.0% | 5.0% | 6.0% | 8.0% | 8.0% | 8.0% | |
Total Asset Turnover | 3.4 | 3.5 | 3.4 | 3.4 | 3.3 | 3.5 | |
Financial Leverage Ratio | 1.7 | 1.7 | 1.9 | 1.8 | 1.8 | 2.1 | |
Using the information presented above, answer/solve the following questions/problems. | |||||||
Part 1) Calculate the debt-to-equity ratio for this company for 2016. Show work for partial credit.
Part 2) Calculate the approximate Return on Assets (ROA) for this company for the year 2015. Show your work
Part 3) Calculate the approximate Return on Total Equity (ROE) for this company for 2014. Show your work
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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