Compare the performance of Fly X to the Industry. For each ratio, comment on whether Fly X is positive or negative relative to the Industry. Median Industry Fly X Ratios Current Ratio 1.43X 1.45 Quick Ratio 0.84X 0.88 Total Asset Turnover Ratio 0.85 1.30 Inventory Turnover Ratio 6.15 12.10 Average Inventory Ratio 59.35 30.17 Receivables Turnover 9.82 13.08 Average Collection Period 37.17 27.90 Debt Ratio 0.52 0.39

Compare the performance of Fly X to the Industry. For each ratio, comment on whether Fly X is positive or negative relative to the Industry. Median Industry Fly X Ratios Current Ratio 1.43X 1.45 Quick Ratio 0.84X 0.88 Total Asset Turnover Ratio 0.85 1.30 Inventory Turnover Ratio 6.15 12.10 Average Inventory Ratio 59.35 30.17 Receivables Turnover 9.82 13.08 Average Collection Period 37.17 27.90 Debt Ratio 0.52 0.39

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter3: Analysis Of Financial Statements

Section: Chapter Questions

Problem 3MC: Calculate the projected inventory turnover, days sales outstanding (DSO), fixed assets turnover, and...

See similar textbooks

Similar questions

Required: (a) You are required to calculate the following ratios:(i) Gross profit margin(ii) Operating profit margin(iii) Expenses to sales(iv) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest cover (b) In light of your calculations comment on the performance of the company over thelast two years.
explain your solution Operating margin Market Ratio Operating income Current Ratio = Ravenue 6957873 73686228 = 0.094 Grooss profit cost of goods solds = 0.561 26505347 47180881 Current Assets Current liabilities 72595989 53459728 = 135795657
Analyze the influence of factors on the level of return on sales (ROS). Choose the proper method of factor analysis. Year 200A Year 200B Sales, $'000 56000 58421 Cost of goods sold, $'000 48000 50024
GIVE THE FORMULAS FOR THE FOLLOWING EFFICIENCY RATIOS OF NESTLE. THANK YOU Ratio Analysis Efficiency Asset turnover Inventory turnover Receivables turnover Summary of Financial Ratios of Nestle 2020 2019 Average collection period (days) 0.68 4.254 7.849 46.519 0.724 4.993 7.867 46.323 Industry Average 449 days 68 days 34 days
Ratio Industry GnG Ratios Ratios 1. Net Income Margin 7.5% 18.2% 2. Receivable Turnover Ratio 9. 14.41 3. Return on Asset Ratio 12% 9.29% 4. Debt to Asset Ratio 1:4 1:1 Interpretation and verbal analysis compared to industry ratios: 1. Liquidity 2. Profitability 3. Solvency
Ratio Industry Ratios GnG Ratios 1. Current Ratio 5.3 2. Acid Test Ratio 5.1 3. Gross Profit Ratio 30% 4. Net Income Margin 7.5% 5. Receivable Turnover Ratio 9 6. Return on Asset Ratio 12% 7. Debt to Asset Ratio 1:4 Interpretation and verbal analysis compared to industry ratios: 1. Liquidity 2. Profitability 3. Solvency Computations:
15- If you would like to measure the effectiveness of asset management of a company, which of the following ratios would be the least useful? Average days in inventory Times interest earned ratio Average collection period Inventory turnover ratio Days sales outstanding
Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test, ratio Asset management ratios: inventory turnover ratio; days sales outstanding (DSO); fixed assets turnover ratio; total assets turnover ratio Financial leverage ratios: debt ratio; times-interest-earned (TIE) ratio; EBITDA coverage ratio Profitability ratios: profit margin on sales; basic earning power (BEP) ratio; return on total assets (ROA); return on common equity (ROE) Market value ratios: price/earnings (P/E) ratio; price/cash flow ratio; market/book (M/B) ratio; book value per share Trend analysis; comparative ratio analysis; benchmarking DuPont equation; window dressing; seasonal effects on ratios
Compute Altoona Companys (a) inventory turnover ratio and (b) number of days sales in inventory ratio, using the following information.
1- Calulate the following liquidity ratio: a. Current Ratio b. Quick Ratio 2-Calulate the following asset management ratios a. Average collection period b. Inventory Turnover c. Fixed-asset turnover d. Total asset turnover 3. Calculate the following financial leverage management ratios: a. debt ratio b. Debt-to-equity ratio c. Times interest earned ratio d. Fixed-charge coverage ratio 4. Calculate the following profitablity leverage management ratios a. Gross profit margin b. Net profit margin c. Return on investment d. Return on Stockholders' equity 5. Calculate the following market-based ratios: a. Price-to-earnings ratio b. Market price-to-book value ratio
7. From the following information, interpret the result of operations of a manufacturing concern, using Trend Ratios. Particulars Sales (Net) Less: Cost of goods sold Gross Profit Less: Operating expenses Net Operating Profit Less: Taxes Profit after tax 2018 100 60 40 10 30 15 15 2019 90 60 30 10 20 10 10 Amount (Rs. In Lakhs) 2020 2021 120 70 50 15 35 17.5 17.5 150 80 70 20 50 25 25
Using the statements provided Calculate the following liquidity ratios: Current ratio Quick ratio Calculate the following asset management ratios: Average collection period Inventory turnover Fixed asset turnover Total asset turnover Calculate the following financial leverage ratios Debt to equity ratio Long-term debt to equity Calculate the following profitability ratios: Gross profit margin Net profit margin Return on assets Return on stockholders’ equity For example: you should present it like the text, or as:Gross margin = 1,933 divided by 8,689 = 22.2% A competitor of ACME has for the same time period reported the following three ratios: Current ratio 1.52Long-term debt to equity .25 or 25%Net profit margin .08 or 8% Given these three ratios only which company is performing better on each ratio? Also overall who would you say has the best financial performance and position. Support your answer.