Below are the financial ratio result of EG Manufacturing for the period 2018, 2019, and 2020...

 

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Below are the financial ratio result of EG Manufacturing for the period 2018, 2019, and 2020 together with the current industry averages Ratio Current Ratio Quick Ratio Inventory Turnover Average Collection Period Total Asset Turnover Debt Ratio Times Interest Earned Gross Profit Margin Net Profit Margin Return on Total Assets Return on Equity Price/Earnings Ratio Market/Book Ratio Evaluate the company's A. Liquidity Ratios B. Activity Ratios C. Debt Ratios D. Profitability Ratios E. Market Ratios 2018 1.70 1.00 5.20 Times 50 days 1.50 Times 45.80% 2019 1.80 0.90 5.00 Times 55 days 1.50 Times 54.30% 2.20 1.90 Times Times 27.50% 28.00% 1.10% 1.00% 1.70% 1.50% 3.10% 3.30% 33.50 38.70 1.00 1.10 2020 2.50 1.30 5.30 Times 57 days 1.60 Times 57.00% 24.50% Industry Average 1.50 1.20 10.20 Times 46 days 2.00 Times 1.60 Times 27.00% 0.71% 1.20% 2.70% 34.50 0.89 2.00 Times 26.00% 1.20% 2.40% 3.20% 43.40 1.20 Below are the financial ratio result of EG Manufacturing for the period 2018, 2019, and 2020 together with the current industry averages Ratio Current Ratio Quick Ratio Inventory Turnover Average Collection Period Total Asset Turnover Debt Ratio Times Interest Earned Gross Profit Margin Net Profit Margin Return on Total Assets Return on Equity Price/Earnings Ratio Market/Book Ratio Evaluate the company's A. Liquidity Ratios B. Activity Ratios C. Debt Ratios D. Profitability Ratios E. Market Ratios 2018 1.70 1.00 5.20 Times 50 days 1.50 Times 45.80% 2019 1.80 0.90 5.00 Times 55 days 1.50 Times 54.30% 2.20 1.90 Times Times 27.50% 28.00% 1.10% 1.00% 1.70% 1.50% 3.10% 3.30% 33.50 38.70 1.00 1.10 2020 2.50 1.30 5.30 Times 57 days 1.60 Times 57.00% 24.50% Industry Average 1.50 1.20 10.20 Times 46 days 2.00 Times 1.60 Times 27.00% 0.71% 1.20% 2.70% 34.50 0.89 2.00 Times 26.00% 1.20% 2.40% 3.20% 43.40 1.20

Answer rating: 100% (QA)

SOLUTION A Liquidity Ratios The current ratio and quick ratio have both improved from 2018 to 2020 indicating that the company is in a better position ... View the full answer