Q3 Reference for comparing the ratio to industry Ratio Result Favorable/ Unfavorable Point Short analysis Point Light Airplane Industry Ratios Lower Current Ratio 1.45 1 Upper Quartile 1 Quartile Median Quick Ratio 0.88 1 1 Current Ratio 0.50 1.43 1.89 0.17 1 1 0.64 0.84 1.05 1 Cash Ratio Total Asset Turnover Inventory Turnover Receivables Turnover 1.30 12.10 13.08 Quick Ratio Cash Ratio Total Asset Turnover Inventory Turnover 0.21 0.85 1 0.08 0.68 4.89 2 0.39 1.28 10.89 1 6.15 Total Debt Ratio 0.39 1 6.27 9.82 11.51 Receivables Turnover 0.63 1 2 0.31 0.52 0.61 1 0.58 Debt-Equity Ratio Equity Multiplier Times Interest Earned Cash Coverage Ratio Profit Margin 1.08 2.08 Total Debt Ratio Debt-Equity Ratio Equity Multiplier Times Interest Earned Cash Coverage Ratio 1.56 2.56 1 1.63 5.61 7.42 6.59% 1.58 1 5.18 5.84 8.06 8.43 9.83 10.27 1 Return on Assets 8.56% 1 4.05% 5.15% 6.47% 2 Profit Margin Return on Equity 14.00% 1 6.05% 10.53% 13.21% Return on Assets Total 14 9 23 point Return on Equity 9.93% 16.54% 26.15% 6 points 47 Deeper analysis on current and quick ratio: 48 49 50 51 52 53 54 55 56 57 58 Overall interpretation 59 60 61 4 point 10 points 62 63 64 Q4 65 Formula Calculation Point 4 4 4 Retention Ratio 66 67 Internal Growth 68 Sustainable Growth 69 70 71 72 73 Overall Interpretation 3 3. Compare the performance of S&S Air to the industry. For each ratio, comment on why it might be viewed as positive or negative relative to the industry. Suppose you create an inventory ratio calculated by inventory divided by current liabilities. How do you think S&S Air's ratio would compare to the industry average? 4. Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean? Q3 Reference for comparing the ratio to industry Ratio Result Favorable/ Unfavorable Point Short analysis Point Light Airplane Industry Ratios Lower Current Ratio 1.45 1 Upper Quartile 1 Quartile Median Quick Ratio 0.88 1 1 Current Ratio 0.50 1.43 1.89 0.17 1 1 0.64 0.84 1.05 1 Cash Ratio Total Asset Turnover Inventory Turnover Receivables Turnover 1.30 12.10 13.08 Quick Ratio Cash Ratio Total Asset Turnover Inventory Turnover 0.21 0.85 1 0.08 0.68 4.89 2 0.39 1.28 10.89 1 6.15 Total Debt Ratio 0.39 1 6.27 9.82 11.51 Receivables Turnover 0.63 1 2 0.31 0.52 0.61 1 0.58 Debt-Equity Ratio Equity Multiplier Times Interest Earned Cash Coverage Ratio Profit Margin 1.08 2.08 Total Debt Ratio Debt-Equity Ratio Equity Multiplier Times Interest Earned Cash Coverage Ratio 1.56 2.56 1 1.63 5.61 7.42 6.59% 1.58 1 5.18 5.84 8.06 8.43 9.83 10.27 1 Return on Assets 8.56% 1 4.05% 5.15% 6.47% 2 Profit Margin Return on Equity 14.00% 1 6.05% 10.53% 13.21% Return on Assets Total 14 9 23 point Return on Equity 9.93% 16.54% 26.15% 6 points 47 Deeper analysis on current and quick ratio: 48 49 50 51 52 53 54 55 56 57 58 Overall interpretation 59 60 61 4 point 10 points 62 63 64 Q4 65 Formula Calculation Point 4 4 4 Retention Ratio 66 67 Internal Growth 68 Sustainable Growth 69 70 71 72 73 Overall Interpretation 3 3. Compare the performance of S&S Air to the industry. For each ratio, comment on why it might be viewed as positive or negative relative to the industry. Suppose you create an inventory ratio calculated by inventory divided by current liabilities. How do you think S&S Air's ratio would compare to the industry average? 4. Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean