Pecunious Products, Inc.'s financial results for the past three years are summarized below:Year 3Year 2Year 1Sales trend128.0115.0100.0Current ratio2.52.32.2Acid-test ratio0.80.91.1Accounts receivable turnoverInventory turnoverDividend yieldDividend payout ratio9.410.612.56.57.28.07.1%6.5%5.8%40%50%60%Return on total assets12.5%11.0%9.5%Return on equityDividends paid per share14.0%10.0%7.8%P1.50P1.50P1.50Required:Based on the ratios presented above, discuss your analysis of Pecunious' financial results withrespect to its:a. Liquidity;b. Asset management;c. Profitability; andd. Market performance

Ratio Analysis is the financial analysis technique which evaluate the profitability, liquidity,…

Pecunious Products, Inc.'s financial results for the past three years are summarized below: Year 3 128.0 Year 2 115.0 Year 1 100.0 Sales trend Current ratio 2.5 2.3 2.2 Acid-test ratio 0.8 0.9 1.1 Accounts receivable turnover 9.4 10.6 12.5 Inventory turnover Dividend yield Dividend payout ratio 6.5 7.2 8.0 7.1% 6.5% 5.8% 40% 50% 60% Return on total assets 12.5% 11.0% 9.5% Return on equity Dividends paid per share 14.0% 10.0% 7.8% P1.50 P1.50 P1.50 Required: Based on the ratios presented above, discuss your analysis of Pecunious' financial results with respect to its: a. Liquidity; b. Asset management; c. Profitability; and d. Market performance

Pecunious Products, Inc.'s financial results for the past three years are summarized below: Year 3 128.0 Year 2 115.0 Year 1 100.0 Sales trend Current ratio 2.5 2.3 2.2 Acid-test ratio 0.8 0.9 1.1 Accounts receivable turnover 9.4 10.6 12.5 Inventory turnover Dividend yield Dividend payout ratio 6.5 7.2 8.0 7.1% 6.5% 5.8% 40% 50% 60% Return on total assets 12.5% 11.0% 9.5% Return on equity Dividends paid per share 14.0% 10.0% 7.8% P1.50 P1.50 P1.50 Required: Based on the ratios presented above, discuss your analysis of Pecunious' financial results with respect to its: a. Liquidity; b. Asset management; c. Profitability; and d. Market performance

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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Question

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Pecunious Products, Inc.'s financial results for the past three years are summarized below:
Year 3
Year 2
Year 1
Sales trend
128.0
115.0
100.0
Current ratio
2.5
2.3
2.2
Acid-test ratio
0.8
0.9
1.1
Accounts receivable turnover
Inventory turnover
Dividend yield
Dividend payout ratio
9.4
10.6
12.5
6.5
7.2
8.0
7.1%
6.5%
5.8%
40%
50%
60%
Return on total assets
12.5%
11.0%
9.5%
Return on equity
Dividends paid per share
14.0%
10.0%
7.8%
P1.50
P1.50
P1.50
Required:
Based on the ratios presented above, discuss your analysis of Pecunious' financial results with
respect to its:
a. Liquidity;
b. Asset management;
c. Profitability; and
d. Market performance

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