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Evaluation Industry Overall Year Average Sectional Series Ratio Formula Liquidity Cross-Time

This document contains financial ratio analyses for a company in 2014, 2015, and the industry cross-sectional average for 2015. It analyzes ratios in several categories: liquidity, activity, debt, profitability, and market. For most ratios, the company performed poorly or okay in 2014, with improved performance in 2015 that was still below industry averages for many ratios. Key ratios showed improving current ratio, debt ratio, times interest earned ratio, and profit margins from 2014 to 2015.

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45 views

Evaluation Industry Overall Year Average Sectional Series Ratio Formula Liquidity Cross-Time

This document contains financial ratio analyses for a company in 2014, 2015, and the industry cross-sectional average for 2015. It analyzes ratios in several categories: liquidity, activity, debt, profitability, and market. For most ratios, the company performed poorly or okay in 2014, with improved performance in 2015 that was still below industry averages for many ratios. Key ratios showed improving current ratio, debt ratio, times interest earned ratio, and profit margins from 2014 to 2015.

Uploaded by

Less Balesoro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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2018-102577 Evaluation

Industry Cross- time


YEAR Average Sectional series Overall
RATIO FORMULA 2014 2015 2015 2015 2014-2015
Liquidity
Current assets
Current ratio Current liabilities 1.20 2.34 2.70 Good Good Good

Current assets - Inventory


Quick (acid test) ratio Current liabilities 0.39 0.84 1.00 Poor Poor Poor

Activity
Cost of goods sold
Inventory Turnover Inventory 4.70 4.10 6.10 Poor Poor Poor
Accounts Receivable
Average collection period Average sales per day 38.2 Days 45.6 Days 32 Days Poor Poor Poor
Sales
Total assets turnover Total assets 2.10 2.00 2.60 Poor Poor Poor
Debt
Total liabilities
Debt Ratio Total assets 82.80% 44.20% 50.00% Ok Good Good
Earnings before interest & taxes
Times interest earned ratio Interest -1.00 7.04 6.20 Ok Good Good
Profitability
Net income
Profit margin Sales -2.65% 3.60% 3.50% Poor Good Good
EBIT
Basic earning power Total assets -4.57% 15.48% 19.10% Poor Poor Poor
Earnings available for common stockholders
Return on total assets (ROA) Total assets -5.59% 7.97% 9.10% Poor Poor Poor
Earnings available for common stockholders
Return on equity (ROE) Common stock equity -32.52% 20.74 18.20% Good Poor Good
Market
Market price per share of common stock
Price/earnings (P/E) ratio Earnings per share -1.40 12.00 14.20 Ok Good Ok
Market price per share of common stock
Market/ book (M/B) ratio Book value per share of common stock 0.46 1.56 2.40 Ok Ok Ok

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