Additional comments: Use the financial information found in the balance sheet and income statement to calculate the financial ratios for the year 2019. Include your results in the column with the 2019 heading. Compare the results with the industry average in the next column. Indicate in the next two columns on the right whether the 2019 results are better or worse than the industry average.

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Current ratio 1.71X Quick ratio .92X 1.65X .89X 1.70X .95X Average collection period 60 days 60 days 65 days Inventory turnover 4.20X 3.90X 4.50X Fixed asset turnover 3.20X 3.33X 3.00X Total asset turnover 1.40X 1.35X 1.37X Debt ratio 59.20% 61.00% 60.00% Times interest earned 4.20X 3.70X 4.75X Gross profit margin 25.00% 23.00% 22.50% Operating profit margin 12.50% 12.70% 12.50% Net profit margin 6.10% 6.00% 6.50% Return on total assets 8.54% 8.10% 8.91% Return on equity 20.93% 20.749 22.28% Current ratio 1.71X Quick ratio .92X 1.65X .89X 1.70X .95X Average collection period 60 days 60 days 65 days Inventory turnover 4.20X 3.90X 4.50X Fixed asset turnover 3.20X 3.33X 3.00X Total asset turnover 1.40X 1.35X 1.37X Debt ratio 59.20% 61.00% 60.00% Times interest earned 4.20X 3.70X 4.75X Gross profit margin 25.00% 23.00% 22.50% Operating profit margin 12.50% 12.70% 12.50% Net profit margin 6.10% 6.00% 6.50% Return on total assets 8.54% 8.10% 8.91% Return on equity 20.93% 20.749 22.28%

Answer rating: 100% (QA)

Here is the analysis of the financial ratios based on the information provided Financial Ratio 2019 Industry Average Compared to Industry Average Curr... View the full answer