Company name: BARRICK GOLD CORPORATION

1. Calculate and comment on the following ratios:   FROM JANUARY 1, 2019 TO PRESENT

a. Working capital (liquidity ratio)

b. Current ratio (liquidity ratio)

c. Debt to total assets ratio (solvency ratio)

d. Basic earnings per share (Profitability ratio)

e. Price earnings ratio (profitability ratio)

f. Gross profit margin (profitability)

g. Profit margin (profitability)

h. Inventory turnover (inventory management)

i. Days in inventory (inventory management)

j. Receivables turnover (liquidity)

k. Average collection period (liquidity)

l. Return on assets ratio (profitability)

m. Asset turnover ratio (profitability)

n. Horizontal percentage of a base period amount

o. Horizontal percentage change for the period

2. Sales trends and gross profit for the periods. Did they increase or decrease? 

3. Comment and compare the profit margin for the company over the two years. 

4. Which inventory method does the company use?  if this is a company you would be interested in as an investment. Use your calculations from above to support your decision.

Answer rating: 100% (QA)

Answer 1 a Working capital ratio Current Assets Current Liabilities 10566000 8739000 1827000 Comment The working capital ratio is positive which indicates that the company has sufficient resources to ... View the full answer