Financial Ratios for 2018 Current Ratio Quick ratio Receivable Turnover Inventory Turnover Debt Ratio Competitor C 4.5:1 3.625:1 7 times 5.3 times 0.075:1 0.825:1 2.6 times 38.5% Competitor B 6:1 4.25:1 P&P Mfg. Co. 9.31:1 6.9:1 18.9 times 7.8 times 0.15:1 0.17:1 3.4 times 49.4% 20 times 8.6 times 0.2:1 Debt-equity Ratio Times Interest Earned Ratio Gross Profit Margin Ratio Net Profit Margin Ratio Return on Assets Return on Equity 1.75:1 4.5 times 51.2% 22.5% 24% 22% 17.6% 26.9% 31.5% 14.5% 16% 12%

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
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Give your insights into the relative solvency or stability of the company (as benchmarked with the competitors) using the following ratios: debt ratio times interest earned ratio debt - equity ratio
Competitor C
4.5:1
3.625:1
7 times
5.3 times
0.075:1
Financial Ratios for 2018
Current Ratio
Quick ratio
Receivable Turnover
Inventory Turnover
Debt Ratio
Debt-equity Ratio
Times Interest Earned Ratio
Gross Profit Margin Ratio
Net Profit Margin Ratio
Return on Assets
Return on Equity
P&P Mfg. Co.
9.31:1
6.9:1
18.9 times
7.8 times
0.15:1
0.17:1
Competitor B
6:1
4.25:1
20 times
8.6 times
0.2:1
1.75:1
4.5 times
0.825:1
2.6 times
3.4 times
49.4%
17.6%
26.9%
31.5%
51.2%
22.5%
24%
22%
38.5%
14.5%
16%
12%
Transcribed Image Text:Competitor C 4.5:1 3.625:1 7 times 5.3 times 0.075:1 Financial Ratios for 2018 Current Ratio Quick ratio Receivable Turnover Inventory Turnover Debt Ratio Debt-equity Ratio Times Interest Earned Ratio Gross Profit Margin Ratio Net Profit Margin Ratio Return on Assets Return on Equity P&P Mfg. Co. 9.31:1 6.9:1 18.9 times 7.8 times 0.15:1 0.17:1 Competitor B 6:1 4.25:1 20 times 8.6 times 0.2:1 1.75:1 4.5 times 0.825:1 2.6 times 3.4 times 49.4% 17.6% 26.9% 31.5% 51.2% 22.5% 24% 22% 38.5% 14.5% 16% 12%
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