Explain what your calculations and comparison show about the business’s current financial health. Give examples to support your explanation for the following questions:

Do the results show the business is financially healthy or unhealthy? Which results indicate this?

What might be the causes of the business’s financial success or failure?

Is more information needed to determine the business’s financial health? If so, which pieces of information might still be needed?

J&J	Ratios Most Recent Fiscal	Ratios Same Fiscal	Difference
Current Ratio	1.35	1.21	0.14
Working Capital	15753	8744	7009
Debt Ratio	0.59	0.6	-0.01
Earnings Per Share	0.0079	0.0056	0.0023
Price Earnings Ratio	0.53	0.71	-0.18
Total Asset Turnover	0.52	0.45	0.07
Financial Leverage	2.46	2.92	-0.46
Net Profit Margin	0.22	0.18	0.04
Return on Assets	0.11	0.08	0.03
Return on Equity	0.28	0.23	0.05

Answer rating: 100% (QA)

To assess the businesss current financial health based on the provided ratios we can analyze the results and compare them to determine if the business is financially healthy or unhealthy Here is an ex... View the full answer