Generate a minimum of 4 financial ratios to assess the financial performance of Mercedes benz company. For each ratio provide: ratio name, ratio definition, report the ratio result (product) of the most recent 2 years, report whether or not the findings for this ratio are poor, satisfactory or excellent. Explain.

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HOSP4060 Professor October 9, 2022 Apple Financial Ratios Net Profit Margin Characterized as a probability ratio, profit margin ratio gives the profit per dollar of sales. Profitability ratios demonstrate the combined effects of liquidity, asset man- agement, and debt onoperating and financial results. Debt To Assets Ratio Debt management ratios, which are also called leverage ra- tios, help identify a firm's use of debtrelative to equity, and its ability to pay interest and principle. This particular ratio will aid in judging the likelihood of default by said com- pany. Current Ratio Current ratio is referred to as a liquidity ratio. It measures liquidity by comparing the current assets to current liabili- ties. It measures a company's ability to pay short term debt obligations within the next year, and how to maximize its balance sheet's current assets to pay such for suchdebt. The ratio should be compared to industry average ratios. Net Profit Margin Formula Net Income available to common stockholders Sales Current Ratio Formula Current Assets Current Liabilities = Current Ratio Year Current Assets Current Liabilities Current Ratio 2019 162,819,000 105,718,000 1.54 143,713,000 105,392,000 2020 1.36 134,836,000 125,481,000 2021 1.07 Industry Average = 2.06 > The company's current ratio from 2019-2021 is below the industry average which means that the company has more current liabilities compared to its current assets. Debt to Assets Ratio = Net Profit Margin Total Debt Total Assets = Debts to Assets Ratio Year 2019 Net Income 55,256 Sales 260,174,000 Net Profit Margin Year 0.21 Debt 108,047,000 Assets 338,516,000 DTA Ratio 2019 0.32 2020 57,411 274,515,000 0.21 2020 2021 94,680 365,817,000 0.26 112,436,000 124,719,000 323,888,000 351,002,000 0.35 2021 0.36 Industry Average: 3.63 > The company's net profit margin or profit margin from 2019-2021 exceeded the industry average which indi- cates financial efficiency and stability. It also manages costs while increasing profits. Industry Average: 0.53 > The company has a lower debt-to-asset or debt ratio from 2019-2021 compared to the industry average which means that the company has lower reliances in debt in the formation of assets. Which is the company is not likely to default its on obligation. End of document HOSP4060 Professor October 9, 2022 Apple Financial Ratios Net Profit Margin Characterized as a probability ratio, profit margin ratio gives the profit per dollar of sales. Profitability ratios demonstrate the combined effects of liquidity, asset man- agement, and debt onoperating and financial results. Debt To Assets Ratio Debt management ratios, which are also called leverage ra- tios, help identify a firm's use of debtrelative to equity, and its ability to pay interest and principle. This particular ratio will aid in judging the likelihood of default by said com- pany. Current Ratio Current ratio is referred to as a liquidity ratio. It measures liquidity by comparing the current assets to current liabili- ties. It measures a company's ability to pay short term debt obligations within the next year, and how to maximize its balance sheet's current assets to pay such for suchdebt. The ratio should be compared to industry average ratios. Net Profit Margin Formula Net Income available to common stockholders Sales Current Ratio Formula Current Assets Current Liabilities = Current Ratio Year Current Assets Current Liabilities Current Ratio 2019 162,819,000 105,718,000 1.54 143,713,000 105,392,000 2020 1.36 134,836,000 125,481,000 2021 1.07 Industry Average = 2.06 > The company's current ratio from 2019-2021 is below the industry average which means that the company has more current liabilities compared to its current assets. Debt to Assets Ratio = Net Profit Margin Total Debt Total Assets = Debts to Assets Ratio Year 2019 Net Income 55,256 Sales 260,174,000 Net Profit Margin Year 0.21 Debt 108,047,000 Assets 338,516,000 DTA Ratio 2019 0.32 2020 57,411 274,515,000 0.21 2020 2021 94,680 365,817,000 0.26 112,436,000 124,719,000 323,888,000 351,002,000 0.35 2021 0.36 Industry Average: 3.63 > The company's net profit margin or profit margin from 2019-2021 exceeded the industry average which indi- cates financial efficiency and stability. It also manages costs while increasing profits. Industry Average: 0.53 > The company has a lower debt-to-asset or debt ratio from 2019-2021 compared to the industry average which means that the company has lower reliances in debt in the formation of assets. Which is the company is not likely to default its on obligation. End of document