(A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the following ratios in your computations: 1. Profitability ratios Gross Profit margin Profit margin Return on assets Return on equity 2. Productivity Inventory Turnover Accounts Receivable Turnover PPE Turnover Asset Turnover 3. Solvency Debt-to-equity Times interest earned Return on Financial leverage 4. Liquidity Current Ratio Quick Ratio Operating cash flow to current liabilities Working capital
(A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the following ratios in your computations: 1. Profitability ratios Gross Profit margin Profit margin Return on assets Return on equity 2. Productivity Inventory Turnover Accounts Receivable Turnover PPE Turnover Asset Turnover 3. Solvency Debt-to-equity Times interest earned Return on Financial leverage 4. Liquidity Current Ratio Quick Ratio Operating cash flow to current liabilities Working capital
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.11E
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(A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the following ratios in your computations:
1. Profitability ratios
Gross Profit margin
Profit margin
Return on assets
Return on equity
2. Productivity
Inventory Turnover
Accounts Receivable Turnover
PPE Turnover
Asset Turnover
3. Solvency
Debt-to-equity
Times interest earned
Return on Financial leverage
4.
Current Ratio
Quick Ratio
Operating cash flow to current liabilities
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