Based on your Ratio Analysis, what steps would you advise your new client to take due to their company's current performance? Please give as detailed an answer as possible. Gross Profit Margin EBIT to Percentage of Sales Net Profit Margin Return on equity Return on Assets S. Canada Inc. Financial Ratios *Refer to Brightspace for the Ratio Formulas 2016 2015 Asset Turnover Working Capital Current Ratio Quick Ratio Days Sales Outstanding (DSO) Accounts Receivable Turnover (ART) Inventory Days on Hand Inventory Turnover Time Interest Earned Debt to Equity ratio Debt to Assets 31.78 -1.99 -2.16 -0.86 -0.51 0.24 $6,423,000.00 2.50 0.87 76.81 4.75 1,110.87 0.33 -6.46 68.18 40.54 32.60 -10.51 -9.89 -3.42 -2.08 0.21 $5,313,000.00 2.13 0.71 83.30 4.38 1,119.67 0.33 -360.00 67.98 40.47 2014 36.17 12.28 13.39 4.49 2.78 0.21 $7,634,000.00 2.21 0.94 73.61 4.96 1,164.57 0.31 45.37 62.34 38.40
Based on your Ratio Analysis, what steps would you advise your new client to take due to their company's current performance? Please give as detailed an answer as possible. Gross Profit Margin EBIT to Percentage of Sales Net Profit Margin Return on equity Return on Assets S. Canada Inc. Financial Ratios *Refer to Brightspace for the Ratio Formulas 2016 2015 Asset Turnover Working Capital Current Ratio Quick Ratio Days Sales Outstanding (DSO) Accounts Receivable Turnover (ART) Inventory Days on Hand Inventory Turnover Time Interest Earned Debt to Equity ratio Debt to Assets 31.78 -1.99 -2.16 -0.86 -0.51 0.24 $6,423,000.00 2.50 0.87 76.81 4.75 1,110.87 0.33 -6.46 68.18 40.54 32.60 -10.51 -9.89 -3.42 -2.08 0.21 $5,313,000.00 2.13 0.71 83.30 4.38 1,119.67 0.33 -360.00 67.98 40.47 2014 36.17 12.28 13.39 4.49 2.78 0.21 $7,634,000.00 2.21 0.94 73.61 4.96 1,164.57 0.31 45.37 62.34 38.40
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Based on your Ratio Analysis, what steps would you advise your new client to take due to their company's current
performance? Please give as detailed an answer as possible.
Gross Profit Margin
EBIT to Percentage of Sales
Net Profit Margin
Return on equity
Return on Assets
Asset Turnover
S. Canada Inc.
Financial Ratios
*Refer to Brightspace for the Ratio Formulas
2016
2015
Working Capital
Current Ratio
Quick Ratio
Days Sales Outstanding (DSO)
Accounts Receivable Turnover (ART)
Inventory Days on Hand
Inventory Turnover
Time Interest Earned
Debt to Equity ratio
Debt to Assets
Show Transcribed Text
31.78
-1.99
-2.16
-0.86
-0.51
0.24
$6,423,000.00
2.50
0.87
76.81
4.75
1,110.87
0.33
-6.46
68.18
40.54
32.60
-10.51
-9.89
-3.42
-2.08
0.21
$5,313,000.00
2.13
0.71
83.30
4.38
1,119.67
0.33
-360.00
67.98
40.47
2014
36.17
12.28
13.39
4.49
2.78
0.21
$7,634,000.00
2.21
0.94
73.61
4.96
1.164.57
0.31
45.37
62.34
38.40
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