MGMT 8500: 23W -capstone -V59 Appendix Two (Benchmarking studies) Objective: To conduct ratio analysis of a comparable company (Waterloo Corporation) and compare with that of the industry. Waterloo Corporation Income Statement Year Ended December 31, 2019 Methodology: - Based on the above information the consulting group will conduct ratio analysis for the following ratios: Current ratio Receivable's turnover Times's interest earned. Profit margin Days in inventory Return on assets. Cash current debt coverage ratio - As a next step the group will compare the ratios calculated above with industry benchmarks. The benchmarks are indicated within brackets besides each ratio. Current ratio (2 to 1) Receivable's turnover (11 times) Times interest earned (16 times) Profit margin (16\%) Days in inventory (115 days) Return on assets (11\%) Cash current debt coverage ratio (2 times)