Please use the table above to answer the following questions: a. Discuss the trend analysis on how Cari Farm performed over the period for each ratio category. b. Report on how Cari Farm performed as compared to the industry norms for each ratio category. c. Calculate the return on assets (ROA) as a percent and the return on equity (ROE) as a percent.
Please use the table above to answer the following questions: a. Discuss the trend analysis on how Cari Farm performed over the period for each ratio category. b. Report on how Cari Farm performed as compared to the industry norms for each ratio category. c. Calculate the return on assets (ROA) as a percent and the return on equity (ROE) as a percent.
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 1: In the table below, you are given the financial performance indicators forCari Farm
during the period 2018 to 2020.
田
Cari Farm
Industry
Performance Area
2018
2019
2020
2018
2019
2020
Leverage:
Assets/Equity
Debt/Equity (%)
Interest Coverage
0.81
1.21
0.92
1.00
1.20
1.15
101.3
81.5
81.6
73.0
77.0
81.0
1.63
2.78
2.04
4.00
3.50
3.30
Liquidity:
Current Ratio
1.22
1.49
1.45
2.00
1.70
1.50
Acid-test Ratio
1.10
1.30
1.20
1.00
0.90
0.90
Profitability:
Profit Margin (%)
11.77
15.58
10.81
15.60
15.71
15.80
Efficiency:
Revenue/Assets
0.47
0.49
0.50
0.60
0.62
0.68
Please use the table above to answer the following questions:
a. Discuss the trend analysis on how Cari Farm performed over the period for each ratio
category.
b. Report on how Cari Farm performed as compared to the industry norms for each ratio
category.
c. Calculate the return on assets (ROA) as a percent and the return on equity (ROE) as a
percent.
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