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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
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.
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
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education