Question: please help me with this 5.13 Calculating and Interpreting Risk Ratios. Refer to the financial statement data for Hasbro in Problem 4.24 in Chapter 4.
5.13 Calculating and Interpreting Risk Ratios. Refer to the financial statement data for Hasbro in Problem 4.24 in Chapter 4. Exhibit 5.15 presents risk ratios for Hasbro for Year 2 and Year 3. Year 4 Current ratio Year 3 Year 2 1.6 Quick ratio 1.5 1.2 1.1 Operating cash flow to current liabilities ratio 0.479 Days accounts receivable outstanding 0.548 68 73 Days inventory held SI 68 Days accounts payable outstanding 47 49 Net days of working capital financing needed 72 91 Liabilities to assets ratio 0.556 0.621 Liabilities to shareholders' equity ratio 1.251 1.639 Long-term debt to long-term capital ratio 0.328 0.418 Long-term debt to shareholders' equity ratio 0.489 0.720 Operating cash flow to total liabilities ratio 0.245 0.238 Interest coverage ratio 5.6 23 REQUIRED a. Calculate the amounts of these ratios for Year 4. b. Assess the changes in the short-term liquidity risk of Hasbro between Year 2 and Year 4 and the level of that risk at the end of Year 4. c. Assess the changes in the long-term solvency risk of Hasbro between Year 2 and Year 4 and the level of that risk at the end of Year24
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
