Question: Based on this information: a) Current ratio 7.99 =71455/(8000+100+845) ( Current assets / Current liabilities ) b.) Total Assets Turnover 0.36 =25000/((64050+75455)/2) (Sales / Average
Based on this information:
| a) | Current ratio | 7.99 | =71455/(8000+100+845) |
| ( Current assets / Current liabilities ) | |||
| b.) | Total Assets Turnover | 0.36 | =25000/((64050+75455)/2) |
| (Sales / Average total assets ) | |||
| c.) | Net profit margin | 30.42% | =7605/25000 |
| (Net income / sales ) | |||
| d.) | Return on Equity | 12.53% | =7605/((56905+64510)/2) |
| (Net income / average stockholder's equity ) | |||
| e.) | Return on Assets | 10.90% | =7605/((64050+75455)/2) |
| (Net income / average total assets) | |||
| f.) | Inventory Turnover | 2.39 | =11000/((6100+3100)/2) |
| ( Cost of goods sold / Average inventory ) | |||
| g.) | Debt to Equity ratio | 0.17 | =10945/64510 |
| ( Total liabilities / Stockholder's equity ) | |||
| h.) | Times interest earned | 85.50 | =8550/100 |
| (Operating Income / Interest Expense ) |
Can you explain how the ABOVE compares to the industry averages of:
Current Ratio - 1.1
Total Asset Turnover - 2.55
Net Profit Margin % - 2.3
ROE% - 18.54
ROA % - 5.12
Inventory Turnover - 7.64
Total Debt to Equity - 0.6
Interest Coverage - 33.45
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