Assignment 3: Ratio Analysis
cabo1789
m1_a3_worksheet.docModule 1 Worksheet 1. Calculate the following ratios AND intepret the result against the industry average :
|
Ratio |
Your Answer |
Industry Average |
Your Interpretation (Good-Fair-Low-Poor) |
|
Profit margin on sales |
|
3% |
|
|
Return on assets |
|
9% |
|
|
Receivable turnover |
|
16X |
|
|
Inventory turnover |
|
10X |
|
|
Fixed asset turnover |
|
2X |
|
|
Total asset turnover |
|
3X |
|
|
Current ratio |
|
2X |
|
|
Quick ratio |
|
1.5X |
|
|
Times interest earned |
|
7X |
|
2. Analysis:
Give your interpretation of what this shows and how the business can use this information to improve it’s performance:
