Ratios Calculated Year 1 Year 2 Year 3 Price to cash flow 4.00 2.80 2.24 Inventory turnover 8.00 6.40 5.12 Debt to equity 0.50 0.40 0.32 ased on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis eport? Check all that apply. Cute Camel Woodcraft Company's ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.50 to 0.32. A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors. A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm. A plausible reason why Cute Camel Woodcraft Company's price-to-cash-flow ratio has decreased is that investors expect lower cash flow per share in the future.
Ratios Calculated Year 1 Year 2 Year 3 Price to cash flow 4.00 2.80 2.24 Inventory turnover 8.00 6.40 5.12 Debt to equity 0.50 0.40 0.32 ased on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis eport? Check all that apply. Cute Camel Woodcraft Company's ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.50 to 0.32. A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors. A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm. A plausible reason why Cute Camel Woodcraft Company's price-to-cash-flow ratio has decreased is that investors expect lower cash flow per share in the future.
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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Transcribed Image Text:Ratios Calculated
Year 1 Year 2
Year 3
Price to cash flow
4.00
2.80
2.24
Inventory turnover
Debt to equity
8.00
6.40
5.12
0.50
0.40
0.32
Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis
report? Check all that apply.
Cute Camel Woodcraft Company's ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.50 to
0.32.
A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate
orders placed to vendors.
A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm.
A plausible reason why Cute Camel Woodcraft Company's price-to-cash-flow ratio has decreased is that investors expect lower cash flow
per share in the future.
2
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