Financial Ratios for 2018 Current Ratio Quick ratio Recelvable Turnover Inventory Turnover Debt Ratio 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% Competitor B 6:1 4.25:1 20 times 8.6 times 0.2:1 1.75:1 Competitor C 4.5:1 3.625:1 7 times 5.3 times 0.075:1 Debt-equity Ratio Times Interest Earned Ratio Gross Profit Margin Ratio 0.825:1 2.6 times 38.5% 4.5 times 51.2%

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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Give a comment on the financial health and performance of the company (as benchmarked with competitors) using the following liquidity ratios: current ratio recievable turnover inventory turnover quick 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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