Some of the financial ratios of V, W, X, Y, and Z companies are calculated and presented in the following table. Ratio V W X Y Z Quick Ratio 4.1 times 2.4 times 3.9 times 2.8 times 3.2 times Return on sales 12% 8% 10% 16% 14% Inventory Turnover Ratio 9.7 times 12.6 times 10.4 times 11.5 times 7.8 times Debt-to- equity Ratio 0.45 0.64 0.21 0.36 0.81 You are an individual investor assessing the publicly traded companies V, W, X, Y, and Z based on their profitability. If you are to choose one of the companies to invest your money, which one would you choose? Explain your reason You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for long-term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for short-term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason
Some of the financial ratios of V, W, X, Y, and Z companies are calculated and presented in the following table. Ratio V W X Y Z Quick Ratio 4.1 times 2.4 times 3.9 times 2.8 times 3.2 times Return on sales 12% 8% 10% 16% 14% Inventory Turnover Ratio 9.7 times 12.6 times 10.4 times 11.5 times 7.8 times Debt-to- equity Ratio 0.45 0.64 0.21 0.36 0.81 You are an individual investor assessing the publicly traded companies V, W, X, Y, and Z based on their profitability. If you are to choose one of the companies to invest your money, which one would you choose? Explain your reason You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for long-term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for short-term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason
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
Some of the financial ratios of V, W, X, Y, and Z companies are calculated and presented in the following table.
|
Ratio |
V |
W |
X |
Y |
Z |
|
Quick Ratio |
4.1 times |
2.4 times |
3.9 times |
2.8 times |
3.2 times |
|
Return on sales |
12% |
8% |
10% |
16% |
14% |
|
Inventory Turnover Ratio |
9.7 times |
12.6 times |
10.4 times |
11.5 times |
7.8 times |
|
Debt-to- equity Ratio |
0.45 |
0.64 |
0.21 |
0.36 |
0.81 |
- You are an individual investor assessing the publicly traded companies V, W, X, Y, and Z based on their profitability. If you are to choose one of the companies to invest your money, which one would you choose? Explain your reason
- You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for long-term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason
- You are the loans manager of a bank assessing the applications of companies V, W, X, Y, and Z for short-term debt. If you are to choose one of the companies to lend money, which one would you choose? Explain your reason
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