Question: How is your company doing against industry standards/comparable using the financial ratios below? The current ratio is 1.43, which is slightly above the industry average
How is your company doing against industry standards/comparable using the financial ratios below?
The current ratio is 1.43, which is slightly above the industry average of 1.3. This means that the company has enough current assets to cover its current liabilities.
The quick ratio is 1.35, which is also slightly above the industry average of 1.2. This means that the company has enough liquid assets to cover its current liabilities.
The debt ratio is 0.70, which is below the industry average of 0.8. This means that the company has a relatively low level of debt.
The debt-equity ratio is 0.08, which is also below the industry average of 0.1. This means that the company has a relatively low level of debt compared to its equity.
The equity multiplier is 3.31, which is above the industry average of 2.5. This means that the company has used a relatively large amount of debt to finance its assets.
The interest coverage ratio is 2.70, which is above the industry average of 2.5. This means that the company is able to cover its interest payments with its earnings.
The inventory turnover ratio is 15.28, which is above the industry average of 12. This means that the company is turning its inventory over relatively quickly.
The total asset turnover ratio is 0.67, which is below the industry average of 0.75. This means that the company is not using its assets as efficiently as other companies in its industry.
The receivables turnover ratio is 4.97, which is above the industry average of 4. This means that the company is collecting its receivables relatively quickly.
The profit margin is 2.26%, which is below the industry average of 3%. This means that the company is not as profitable as other companies in its industry.
The return on assets is 1.52%, which is also below the industry average of 2%. This means that the company is not as profitable as other companies in its industry.
The ROE is 5.04%, which is above the industry average of 4%. This means that the company is more profitable than other companies in its industry.
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