Current ratio Quick ratio Total asset turnover Inventory turnover Receivables turnover Debt ratio Debt-equity ratio Equity multiplier Interest coverage Profit margin Return on assets Return on equity Yacht Industry Ratios Lower Quartile .86 43 1.10 12.18 10.25 .32 .83 1.83 5.72 5.02% 7.05% 14.06% Median 1.51 .75 1.27 14.38 17.65 56 1.13 2.13 8.21 7.48% 10.67% 19.32% Upper Quartile 1.97 1.01 1.46 16.43 22.43 .61 1.44 2.44 10.83 9.05% 14.16% 26.41% Calculate all of the ratios listed in the industry table for East Coast Yachts. Compare East Coast liquidity, financial leverage and turnover ratios to the industry standards. Please analyze if East Coast is doing better or worse than the industry standard and what that means for the company.
Current ratio Quick ratio Total asset turnover Inventory turnover Receivables turnover Debt ratio Debt-equity ratio Equity multiplier Interest coverage Profit margin Return on assets Return on equity Yacht Industry Ratios Lower Quartile .86 43 1.10 12.18 10.25 .32 .83 1.83 5.72 5.02% 7.05% 14.06% Median 1.51 .75 1.27 14.38 17.65 56 1.13 2.13 8.21 7.48% 10.67% 19.32% Upper Quartile 1.97 1.01 1.46 16.43 22.43 .61 1.44 2.44 10.83 9.05% 14.16% 26.41% Calculate all of the ratios listed in the industry table for East Coast Yachts. Compare East Coast liquidity, financial leverage and turnover ratios to the industry standards. Please analyze if East Coast is doing better or worse than the industry standard and what that means for the company.
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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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:EAST COAST YACHTS
2020 Income Statement
Sales
Cost of goods sold
Selling, general, and administrative
Depreciation
EBIT
Interest expense
EBT
Taxes (25%)
Net income
Dividends
Retained earnings
$550,424,000
397,185,000
65,778,000
17,963,000
$ 69,498,000
9,900,000
$ 59,598,000
14,899,500
$ 44,698,500
$ 19,374,500
25,324,000
Current assets
Cash and equivalents
Accounts receivable
Inventory
Other
Total current assets
Fixed assets
Property, plant, and equipment
Less accumulated depreciation
Net property, plant, and equipment
Intangible assets and others
Total fixed assets
Total assets
EAST COAST YACHTS
2020 Balance Sheet
$ 10,107,000
16,813,300
18,135,700
1,054,900
$ 46,110,900
$412,032,000
(102,452,000)
$309,580,000
6,772,000
$316,352,000
$362,462,900
Current liabilities
Accounts payable
Accrued expenses
Total current liabilities
Long-term debt
Total long-term liabilities
Stockholders' equity
Preferred stock
Common stock
Capital surplus
Accumulated retained earnings
Less treasury stock
Total equity
Total liabilities and shareholders' equity
$ 40,161,400
5,723,700
$ 45,855,100
$152,374,000
$152,374,000
$ 1,773,000
31,802,000
27,348,000
146,052,800
(42,772,000)
$164,203,800
$362,462,900
Transcribed Image Text:Current ratio
Quick ratio
Total asset turnover
Inventory turnover
Receivables turnover
Debt ratio
Debt-equity ratio
Equity multiplier
Interest coverage
Profit margin
Return on assets
Return on equity
Yacht Industry Ratios
Lower Quartile
.86
.43
1.10
12.18
10.25
.32
.83
1.83
5.72
5.02%
7.05%
14.06%
Median
1.51
.75
1.27
14.38
17.65
.56
1.13
2.13
8.21
7.48%
10.67%
19.32%
Upper Quartile
1.97
1.01
1.46
16.43
22.43
.61
1.44
2.44
10.83
9.05%
14.16%
26.41%
Calculate all of the ratios listed in the industry table for East Coast Yachts.
Compare East Coast liquidity, financial leverage and turnover ratios to the industry standards. Please analyze if East Coast is doing better or worse than the industry standard and what that
means for the company.
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