A company has been in business for a number of years. Merkel has the following financial ratios: return on equity (ROE) = 85% Net profit margin= 19% total asset turnover= 4.9 earnings quality= 0.5 debt-to-equity ratio= 4.2 question: Prepare an analysis of this company. Discuss and interpret the financial ratios above.  what at the strengths AND weaknesses of the company?  are there any troubling signs?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 10P
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A company has been in business for a number of years. Merkel has the following financial ratios:

return on equity (ROE) = 85%
Net profit margin= 19%
total asset turnover= 4.9
earnings quality= 0.5
debt-to-equity ratio= 4.2

question:

Prepare an analysis of this company. Discuss and interpret the financial ratios above. 
what at the strengths AND weaknesses of the company? 
are there any troubling signs?

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