2. List the financial weaknesses and strengths of the company by comparing the following ratios with the sector averages. Current Ratio Quick Ratio Cash Ratio Total Debt Ratio A/R Turnover Ratio Collection Period Inventory Turnover Ratio Day's Sales in Inventory Total Asset Turnover Ratio Net Profit Margin Return on Assets Return on Equity The Company Industry Average 2,20 1,50 0,14 0,43 30,00 12,00 30,10 11,50 2,80 1,77 1,05 0,11 0,37 22,11 16,51 17,38 21,00 2,39 0.05 0,13 0,20 0,04 0,13 0,22

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2. List the financial weaknesses and strengths of the company
by comparing the following ratios with the sector averages.
Current Ratio
Quick Ratio
Cash Ratio
Total Debt Ratio
A/R Turnover Ratio
Collection Period
Inventory Turnover Ratio
Day's Sales in Inventory
Total Asset Turnover Ratio
Net Profit Margin
Return on Assets
Return on Equity
The Company Industry Average
2,20
1,50
0,14
0,43
30,00
12,00
30,10
11,50
2,80
0,04
0,13
0,22
1,77
1,05
0,11
0,37
22,11
16,51
17,38
21,00
2,39
0.05
0,13
0,20
Transcribed Image Text:2. List the financial weaknesses and strengths of the company by comparing the following ratios with the sector averages. Current Ratio Quick Ratio Cash Ratio Total Debt Ratio A/R Turnover Ratio Collection Period Inventory Turnover Ratio Day's Sales in Inventory Total Asset Turnover Ratio Net Profit Margin Return on Assets Return on Equity The Company Industry Average 2,20 1,50 0,14 0,43 30,00 12,00 30,10 11,50 2,80 0,04 0,13 0,22 1,77 1,05 0,11 0,37 22,11 16,51 17,38 21,00 2,39 0.05 0,13 0,20
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