1 / 10

Final Project Ratios

Analyzing financial ratios for Divisions A, B, and C, along with consolidated ratios. Highlights strong points and weaknesses in current, quick, debt to assets, return on sales, collection periods, and inventory days ratios.

vadin
Télécharger la présentation

Final Project Ratios

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Final Project Ratios Jeremiah Lynch Computer Applications And Accounting Dr. James Borden

  2. Division A

  3. Division A Points • Current Ration of 1.39… • Close to the goal of 2 to 1 • Firm is paying of the debt well • Quick of 0.34, also positive of debt payback • Debt to Asset of .187.., low likely to pay debt • Positive Return of Sales, signifies positive profit, maybe its too low • Average Collection of 311.., little large • May be cutting cash flow, or never collect (weakness) • Average days inventory of 0.18, a little low • Might not be able to get more inventory

  4. Division B

  5. Division B Points • Current Ratio is strong, 1.8.., goal of 2 • Fairly Strong of 0.4.., want 1, not great • Low Debt to Assets, ability to pay debt • Return on Sales somewhat low • Decent Average Collection Period, not cutting cash flow • Average days inventory low, can’t get more

  6. Division C

  7. Division C Points • Good Current Ratio of 1.7..(2), close • Strong Quick Ratio, close to 1 • Higher Debt to Assets, look at debt payoff • Low Return on Sales, profit low? • High Average Collection Period, • Cut cash flow, may never collect • Average days inventory low, can’t attain

  8. Consolidated Ratios

  9. Consolidated Points • Current Ratio that is too high (2) • Quick Ratio that is also to big • Large Debt to Assets, look at Debt Payoff • Decent return on sale in Comparison • Large Average Collection Period, cut cash flow, may never collect • Decent average days inventory

  10. Ratio Chart

More Related