Base on this financial ratios, what are your conclusions and recommendations for the company COMPANY BRATIO20192018Liquidity1Current Ratio1.031.662 Quick Ratio0.771.05Profitability3 ROE17.07%18.40%4 ROA5 GPM6 OPM7 NPM7.02%8.73%29.28%28.76%16.51%15.92%10.50%11.10%Leverage8 Debt Ratio0.590.539 Debt to Equity Ratio10 Time Interest Earned RaEfficiency11 A/R Turnover Ratio12 Average Collection Perid13 Inventory Turnover Ratid14 Average Age of Inventor15 Accounts Payable Ratio16 Average Age of Payable17 Operating Cycle18 Cash Conversion Cycle1.431.113.565.7417.9939.0820912.219.04294013.2613.3027274949222219 Total Asset Turnover Rat20 Fixed Asset Turnover Ra0.670.795.104.43

The ratio is a measure of the financial performance of the company that shows the relation between…

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Base on this financial ratios, what are your conclusions and recommendations for the company

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Base on this financial ratios, what are your conclusions and recommendations for the company

COMPANY B
RATIO
2019
2018
Liquidity
1Current Ratio
1.03
1.66
2 Quick Ratio
0.77
1.05
Profitability
3 ROE
17.07%
18.40%
4 ROA
5 GPM
6 OPM
7 NPM
7.02%
8.73%
29.28%
28.76%
16.51%
15.92%
10.50%
11.10%
Leverage
8 Debt Ratio
0.59
0.53
9 Debt to Equity Ratio
10 Time Interest Earned Ra
Efficiency
11 A/R Turnover Ratio
12 Average Collection Perid
13 Inventory Turnover Ratid
14 Average Age of Inventor
15 Accounts Payable Ratio
16 Average Age of Payable
17 Operating Cycle
18 Cash Conversion Cycle
1.43
1.11
3.56
5.74
17.99
39.08
20
9
12.21
9.04
29
40
13.26
13.30
27
27
49
49
22
22
19 Total Asset Turnover Rat
20 Fixed Asset Turnover Ra
0.67
0.79
5.10
4.43

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