1. Provide the equation for each ratio listed. 2. What does each ratio listed tell you about the company? 3. Compare the company ratios to the standard ratios, and give an overall analysis of the company.
1. Provide the equation for each ratio listed. 2. What does each ratio listed tell you about the company? 3. Compare the company ratios to the standard ratios, and give an overall analysis of the company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. Provide the equation for each ratio listed.
2. What does each ratio listed tell you about the company?
3. Compare the company ratios to the standard ratios, and give an overall analysis of the company.

Transcribed Image Text:Gross Profit Margin
Net Profit Margin
Earnings per Share
Return on Assets
Debt to assets ratio
Current ratio
Inventory Turnover
Days in Inventory
Average receivable turnover
Average collection period
Company Ratios
41.04%
12.21%
.40
6.86%
.44
.53
13.22
27.61
8.38
43.56
Standard Ratios
40.00%
15.20%
.80
11.00%
.50
1.50
15.00
24.33
15.00
24.33
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