Analyze the significant trends for the 3 years for liquidity. Include the inventory valuation method the company
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Analyze the significant trends for the 3 years for liquidity. Include the inventory valuation method the company uses, as well as the policy for credit and collection and the effect these have on liquidity ratios.
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Liquidity Ratios Short-Term Debt Paying Ratios Working Capital Current Ratio Acid Test Ratio Cash Ratio Long-Term Solvency or Financial Leverage Times Interested Eamed Fixed Charge Coverage Debt Ratio Debt: Equity Ratio Asset Utilization or Turnover Ratios Inventory tumover Days Sales in Inventory Receivables Turnover Days Sales in Receivables Operating Cycle Profitability Ratios Net Profit Margin Ratio Total Asset Tumover Return on Assets Operating Income Margin Sales to Fixed Assets ROE Return on Common Equity Gross Profit Margin Investor Ratios Degree of Financial Leverage Earnings per Share Diluted Earnings per Share Price/Earnings Ratio Percentage of Earnings Retained Dividend Payout Dividend Yield 2019 1359759 1.55 0.70 0.41 -10.81 1.05 77.3% 3.41 3.64 100.34 11.15 5.5% 1.55 -8% -6% 7.80 -35% -0.89 32% 4.41 -4.94 -4.94 211.73 -14% 6% Company 2018 1832340 1.88 0.62 0.24 -1.25 1.03 61.0% 1.57 3.03 120.62 3.99 1.1% 1.77 -2% -1% 6.49 -5% -0.20 34% 2.57 -1.02 -1.02 1089.50 -63% 4% 2017 1805393 1.83 0.57 0.16 11.59 2.02 59.0% 1.44 2.90 126.07 35.68 3.4% 1.78 6% 6% 6.47 15% 0.62 36% 2.44 3.05 3.04 371.92 20% 3% Competitor Industry Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Liquidity Ratios Short-Term Debt Paying Ratios Working Capital Current Ratio Acid Test Ratio Cash Ratio Long-Term Solvency or Financial Leverage Times Interested Eamed Fixed Charge Coverage Debt Ratio Debt: Equity Ratio Asset Utilization or Turnover Ratios Inventory tumover Days Sales in Inventory Receivables Turnover Days Sales in Receivables Operating Cycle Profitability Ratios Net Profit Margin Ratio Total Asset Tumover Return on Assets Operating Income Margin Sales to Fixed Assets ROE Return on Common Equity Gross Profit Margin Investor Ratios Degree of Financial Leverage Earnings per Share Diluted Earnings per Share Price/Earnings Ratio Percentage of Earnings Retained Dividend Payout Dividend Yield 2019 1359759 1.55 0.70 0.41 -10.81 1.05 77.3% 3.41 3.64 100.34 11.15 5.5% 1.55 -8% -6% 7.80 -35% -0.89 32% 4.41 -4.94 -4.94 211.73 -14% 6% Company 2018 1832340 1.88 0.62 0.24 -1.25 1.03 61.0% 1.57 3.03 120.62 3.99 1.1% 1.77 -2% -1% 6.49 -5% -0.20 34% 2.57 -1.02 -1.02 1089.50 -63% 4% 2017 1805393 1.83 0.57 0.16 11.59 2.02 59.0% 1.44 2.90 126.07 35.68 3.4% 1.78 6% 6% 6.47 15% 0.62 36% 2.44 3.05 3.04 371.92 20% 3% Competitor Industry Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail
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The significant trends for the 3 years for liquidity are as follows The current ratio has decreased ... View the full answer
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Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
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