ARDI CASE 4 Some of the financial ratios of V, W, X, Y, and Z companies...

 

Transcribed Image Text:

ARDI CASE 4 Some of the financial ratios of V, W, X, Y, and Z companies are calculated and presented in the following table. Ratio Quick Ratio Return on sales Inventory Turnover Ratio Debt-to-equity Ratio V 4.1 times. 12% 9.7 times 0.45 W 2.4 times. 8% 12.6 times. 0.64 X 3.9 times 10% 10.4 times 0.21 Y 2.8 times: 16% 11.5 times. 0.36 Z 3.2 times. 14% 7.8 times 0.81 1. You are an individual investor assessing the publicly traded companies V, W, X, Y, and Z based on their profitability. If you are to choose one of the companies to invest your money, which one would you choose? Explain your reason 2. You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for long- term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason. 3. You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for short- term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason 目印良修理 %100 TR ARDI CASE 4 Some of the financial ratios of V, W, X, Y, and Z companies are calculated and presented in the following table. Ratio Quick Ratio Return on sales Inventory Turnover Ratio Debt-to-equity Ratio V 4.1 times. 12% 9.7 times 0.45 W 2.4 times. 8% 12.6 times. 0.64 X 3.9 times 10% 10.4 times 0.21 Y 2.8 times: 16% 11.5 times. 0.36 Z 3.2 times. 14% 7.8 times 0.81 1. You are an individual investor assessing the publicly traded companies V, W, X, Y, and Z based on their profitability. If you are to choose one of the companies to invest your money, which one would you choose? Explain your reason 2. You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for long- term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason. 3. You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for short- term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason 目印良修理 %100 TR

Answer rating: 100% (QA)

1 If I were an individual investor assessing the publicly traded companies V W X Y and Z based on th... View the full answer