usion for company B 2. Recommenda
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Requirements
1. Conclusion for company B
2. Recommendation for Company B
![COMPANY B
RATIO
2019
2018
Liquidity
1Current Ratio
1.03
1.66
2 Quick Ratio
0.77
1.05
Profitability
3 ROE
17.07%
18.40%
4 ROA
5 GPM
6 OPM
7 NPM
7.02%
8.73%
29.28%
28.76%
16.51%
15.92%
10.50%
11.10%
Leverage
8 Debt Ratio
0.59
0.53
9 Debt to Equity Ratio
10 Time Interest Earned Ra
Efficiency
11 A/R Turnover Ratio
12 Average Collection Perid
13 Inventory Turnover Ratid
14 Average Age of Inventor
15 Accounts Payable Ratio
16 Average Age of Payable
17 Operating Cycle
18 Cash Conversion Cycle
1.43
1.11
3.56
5.74
17.99
39.08
20
9
12.21
9.04
29
40
13.26
13.30
27
27
49
49
22
22
19 Total Asset Turnover Rat
20 Fixed Asset Turnover Ra
0.67
0.79
5.10
4.43](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F66e7868a-08b1-4427-a59c-5b414576c94e%2F522c0c68-b804-4fb4-a0ac-f323c524d751%2Fkypoe5_processed.png&w=3840&q=75)
Transcribed Image Text:COMPANY B
RATIO
2019
2018
Liquidity
1Current Ratio
1.03
1.66
2 Quick Ratio
0.77
1.05
Profitability
3 ROE
17.07%
18.40%
4 ROA
5 GPM
6 OPM
7 NPM
7.02%
8.73%
29.28%
28.76%
16.51%
15.92%
10.50%
11.10%
Leverage
8 Debt Ratio
0.59
0.53
9 Debt to Equity Ratio
10 Time Interest Earned Ra
Efficiency
11 A/R Turnover Ratio
12 Average Collection Perid
13 Inventory Turnover Ratid
14 Average Age of Inventor
15 Accounts Payable Ratio
16 Average Age of Payable
17 Operating Cycle
18 Cash Conversion Cycle
1.43
1.11
3.56
5.74
17.99
39.08
20
9
12.21
9.04
29
40
13.26
13.30
27
27
49
49
22
22
19 Total Asset Turnover Rat
20 Fixed Asset Turnover Ra
0.67
0.79
5.10
4.43
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