Explain the market value and if the company has a chance of success if they apply for a loan
Explain the market value and if the company has a chance of success if they apply for a loan
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Explain the market value and if the company has a chance of success if they apply for a loan
Transcribed Image Text:Analysis of Financial Data (Table with ratios)
2021
Industry
Average
Ratio Analysis
Est. 2020
2019
Liquidity Ratios
Current Ratio (times)
2.33
3.23
3.68
4.2
Quick Ratio (times)
0.90
1.24
1.79
2.1
Asset Management Ratios
Average sales day
10.96
8.21
7.81
9
Inventory Tumover Ratio (times)
4.71
4.41
5.06
Days Sales Outstanding (days)
38.32
45.75
40.34
36
Fixed Assets Tumover Ratio (times)
2.12
2.52
3.28
3
Total Asset Tumover Ratio
1.53
1.55
1.70
1.8
Debt Management Ratios
Total Debt to Total Assets (%)
59.10
48.58
47.62
40
Times Interest Eamed (times)
7.90
6.82
11.00
6
Debt to Equity Ratio (6)
1.44
0.94
0.91
1
Profitability Ratios
Profit Margin on Sales (%6)
10.25
10.11
12.49
Eaming Power (6)
26.08
27.40
39.29
17.2
Retum on Total Assets (6)
13.54
13.84
21.19
12
Retum on Common Equity (6)
34.20
27.92
42.38
25
Market Value Ratios Price/Earnings
Ratio
Price Earnings Ratio (times)
Price Cash Flow Ratio (times)
3.41
3.80
3.65
12.5
2.69
2.85
2.91
6.8
Market Book Value Ratio (times)
1.17
1.06
1.55
1.7
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