refer to the photo below. Please provide a complete and correct solution. Instructions: Kindly make an analysis about the asset management ratio (Receivable Turnover,Fixed Asset Turnover, and Total Asset turnover) of SM Investment Corporation.Inventory TurnoverReceivable TurnoverDays sales Outstanding (DSO)Fixed Asset TurnoverTotal Asset turnover202120202019201820170%2.923.346.423.894.337.484.9520212.924.338.44Inventory Turnover12.690.30ASSET MANAGEMENT RATIO9.5202020193.346.424.957.487.38 48.828.8515.340.317.383.658.444.130.870.56Receivable TurnoverFixed Asset Turnover20183.70Total Asset turnover9.503.6516.910.4120173.898.854.1314.900.40Days sales Outstanding (DSO)12.69 0.315.34 0.348.82 0.8716.91 0.414.9 0.4100%|

i) Inventory turnover-This ratio shows the number of times a business replaces its stock of goods…

Answered: efer to the photo below. Please provide…

Business

Finance

efer to the photo below. Please provide a complete and correct solution.

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

Related questions

Q: 7. Charles Inc. has an ending inventory of $423,425, and the cost of goods sold for the year just…

A: Solution:- Inventory Turnover ratio computes the pace at which the inventory is being used.

Q: 6) You are loaned $300 at the end of years 1 and 2, and loaned X at the end of year 3. You pay this…

A: Value of money falls with the passage of time, this concept is called time value of money (TVM).…

Q: "Financial Derivative and Risk Management" Why are the probabilities of stock price movements not…

A: Option prices are basically the sum of the intrinsic and time value of an option. The price…

Q: Briefly define each of the major types of international bond market instruments, noting their…

A: Since you have posted a question with multiple subparts, we will solve first three sub parts for…

Q: A "risk-premium" is the difference between ___________________________ . A) the variance of a…

A: Solution:- Capital Asset Pricing Model (CAPM) is the equity model to determine the expected rate of…

Q: Islamic banking

A: Islamic banking is a system of banking in accordance with the rules of the Shariat. There is no…

Q: 1.1) You have just won the lottery and will receive $2.5 million in one year. You will receive…

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…

Q: Option has a strike price of $75 and expires 65 days from today. The return on a 65-day T-bill is…

A: The following information is provided in the question: Strike price =$75 Expiry period =65 days…

Q: Determine P & F for the diagram below: Immi For the first seven years, interest is 12% per year…

A: Here, Annual deposits for the first 7 years = 500 Interest rate = 12% compounded monthly Annual…

Q: 1-Jan-20 100,000.00 800,000.00 26.00 Shs Outstanding SHE, in pesos MP per sh Div per sh Cost of…

A: Market value added: MVAs are depictions of the value produced by the management of a firm through…

Q: AmutualfundhasPhP600millionworthofstocks,PhP5millionworthofbonds,andPhP1millionin cash. The fund’s…

A: NAV refers to net asset value. NAV, essentially, is the unit price in a mutual fund scheme.

Q: Which statement regarding relative valuation is true? a. Relative valuation using book values is…

A: Relative valuation model is also known as the technique or method of business valuation, which helps…

Q: You have an opportunity to invest $104,000 now in return for $79,800 in one year and $29,600 in two…

A: A discounted method called net present value (NPV) is used to assess the effectiveness of long-term…

Q: The following are the monetary policy tools EXCEPT:* A. buying and selling of short-term…

A: Monetary policies are operated by the Central bank of the country which regulates the banking system…

Q: You want to withdraw $ 21,769 from your account at the end of one year and $ 34,587 at the end of…

A: As per the given information: Withdrawals at the end of the one year - $21,769 Withdrawals at the…

Q: INFORMATION Zeda Enterprises has the option to invest in machinery in projects A and B but finance…

A: Payback Period is that period under which we will received the money which was invested by the…

Q: Jackie Martin purchased three $1,000 corporate bonds issued by Starbucks. The bonds pay 2.45 percent…

A: Interest is received on the face value of the bonds issued and is paid annually/monthly/quarterly…

Q: Assume you put $600 per month into a retirement account for 14 years, and the account has an APR of…

A: Given: Particulars Amount Payment(PMT) $600 Years 14 Interest rate 3.02%

Q: sume that you have some shares of stock in ABC Inc. Why do we say that if you also purchase a put…

A: Options gives the opportunity to buy or sell stock the on expiration but there is no obligations to…

Q: The following are the sources of funds of Islamic banking EXCEPT:* A. Investment fund…

A: It is well knowledge that interest-based banks take deposits with various maturities and offer…

Q: 1.What is the amount a person would have to deposit today (present value) at 11 percent interest…

A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve…

Q: Fujita, Incorporated, has no debt outstanding and a total market value of $140,000. Earnings before…

A: Earning per share: Earnings per share is defined as the profit per outstanding share of stock,…

Q: You bought a ten-year zero-coupon bond at a 4% YTM. You intend to sell it in one year. How much must…

A: First we need to determine the current price of the 10 year zero bond Price of bond at time of…

Q: Abbott, Inc., is expected to maintain a constant 2% annual growth rate in its dividends,…

A: Growth rate of dividends is 2% Dividend just paid is $1.5 Current price is $62 To Find: Required…

Q: Epsilon Corporation will be purchasing 2,000 shares of XYZ Corporation. Last year, annual dividends…

A: Dividend discount model It is used to calculate the value of a share. Under this model, the sum of…

Q: Jamie wants a new smart TV/sound system that costs $1,250. He does not have that much in cash to…

A: Cost of Smart TV is $1250 Down payment of $250 Annual interest rate is 18% To Find: Total Interest…

Q: inance What are different Anti Merger strategies available to management of firm?

A: Hostile Takeovers/Mergers: It occurs when the management or board of directors of the targeted…

Q: Assume that your company has the cost of equity of 3% (for the purpose of preventing error carried…

A: Growth rate 0.03227 D1 1.73422 P0 26.78

Q: Which alternative in the table below should be selected when the MARR = 4% per year? The life of…

A: IRR is a rate at which NPV of the project is equal to the zero or it can be said that PV of cash…

Q: QUESTION) Calculate the Accounting Rate of Return (on average investment) of Project B (expressed to…

A: Accounting rate of return is a ratio in capital budgeting that does not take into account the time…

Q: 25 What lesson did we derive from Suratul Baqara Q2:280 in relation to Islamic banks’…

A: Reciting Surah Al-Baqarah has various advantages, but its protection from Shaitan (Satan) and all…

Q: 4. A principal of P27,000 was placed in an investment which gives the interest of 12% compounded…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: a. If the tax rate is 23 percent, what is the project's Year O net cash flow? Year 1? Year 2? Year…

A: Net present value (NPV) of an alternative/project refers to the difference between the initial…

Q: .Intrinsic valuation and relative valuation

A: Preference shares refer to the shares that enable the shareholders for receiving dividend that is…

Q: what does cash burn impact when owning a business?

A: Cash burn- It is the rate by which a company uses its cash in the business over a period of time…

Q: Assume you have $1600 to invest in a 4 year CD with an APR 2.8% compounded daily. When the CD…

A: Certificate of deposit (CD) A certificate of deposit (CD) is a type of savings account where the…

Q: You want to buy a new sports coupe for $75,100, and the finance office at the dealership has quoted…

A: Loan Amount is $75,100 APR is 7.5% Total Number of months is 72 Monthly rate is 7.5%12=0.625% To…

Q: oman just retired, and has $700,000 to invest. A very safe Certificate of Deposit (CD) account pays…

A: Let x = the CD amount and y = the bond amount. As per case, x+y = 700000 y = 700000 - x

Q: These are the objectives of Central Bank of Malaysia based on Central Bank of Malaysia Act 1958…

A: Central bank is referred as the public institution, which helps in managing the nations' currency…

Q: Which alternative in the table below should be selected when the MARR= 4% per year? The life of each…

A: Net present value (NPV) It is a capital budgeting tool to decide on the best investment among…

Q: (ADLA), Maria is a divorce attorney who practices law in San Francisco. She wants to join the…

A: Given: Annuity due Annual payment “PMT” = $500 Annual interest rate “r” = 8.5% Cost of lifetime…

Q: A company makes and sells ornamental vases. To make the vases there is a fixed monthly cost of…

A: The Basic Sales Equation is Sales = Variable Cost + Fixed Cost + Profit

Q: Additional Information The discount rate used by the company is 12%. 5.2 Use the information…

A: Internal Rate of Return is a techniques in Capital Budgeting through which we can know the actual…

Q: company makes payments of $1,600 at the end of every month, how long will it take to settle the…

A: Loan: It is the amount of credit taken by the borrower for a period from the lender. The lender…

Q: five years: -29.1 percent, 16.4 percent, 35.8 percent, 3.7 percent, and 22.7 percent. The average…

A: Nominal interest rate is interest rate without effect of inflation rate and real interest rate is…

Q: 3. Financial Ratios I. Given Current Assets Common Equity Current Liabilities Interest Expense EBIT…

A: Solution:- Times Interest Earned ratio measures that how much times a firm can pay its interest…

Q: Find the value of X so that the present value of the following cash flow is equal to $70,000.…

A: We will use the concept of time value of money. As per the concept of time value of money for…

Q: Stock A sells for $40.00, Stock B for $50.00 and Stock C for $30.00. Stock C splits three for one.…

A: New divisor or the new number of shares to compute the price weighted average:Price average before…

Q: You go to the loan fund of the company where you work and find that they have an emergency fund…

A: Given, that the payments in month 3,6,9,12 is double than the normal payments in other months.…

Q: The total maintenance expense of a certain machine is 15,845 and can be disbursed by paying 3,458 at…

A: Annual equivalent cost is that is equivalent to the cost today considering the interest rate and…

Question

refer to the photo below. Please provide a complete and correct solution.

Instructions: Kindly make an analysis about the asset management ratio (Receivable Turnover,
Fixed Asset Turnover, and Total Asset turnover) of SM Investment Corporation.
Inventory Turnover
Receivable Turnover
Days sales Outstanding (DSO)
Fixed Asset Turnover
Total Asset turnover
2021
2020
2019
2018
2017
0%
2.92
3.34
6.42
3.89
4.33
7.48
4.95
2021
2.92
4.33
8.44
Inventory Turnover
12.69
0.30
ASSET MANAGEMENT RATIO
9.5
2020
2019
3.34
6.42
4.95
7.48
7.38 48.82
8.85
15.34
0.31
7.38
3.65
8.44
4.13
0.87
0.56
Receivable Turnover
Fixed Asset Turnover
2018
3.70
Total Asset turnover
9.50
3.65
16.91
0.41
2017
3.89
8.85
4.13
14.90
0.40
Days sales Outstanding (DSO)
12.69 0.3
15.34 0.3
48.82 0.87
16.91 0.4
14.9 0.4
100%
|

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Analyze Home Depot The Home Depot (HD) reported the following data (in millions) in its recent financial statements: a. Determine the asset turnover ratio for Home Depot for Year 2 and Year 1. Round to two decimal places. b. What conclusions can be drawn from these ratios concerning the change in the ability of Home Depot to effectively use its assets to generate sales?
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Asset turnover
Asset Efficiency Ratios Selected financial statement numbers for Rutherford Company follow. Required: 1. Using this information, calculate Rutherfords receivable turnover ratio (rounded to two decimal places.) 2. Using this information, calculate Rutherfords asset turnover ratio (rounded to two decimal places) and also convert the ratio into days (rounded to the nearest whole day).
Calculate the projected inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. How does Computron’s utilization of assets stack up against that of other firms in its industry?
Comparative Analysis: Under Armour, Inc., versus Columbia Sportswear Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com. Required: Compute the fixed asset turnover and the average age of fixed assets for each company for 2016. What conclusions can you draw from these ratios?
Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
Calculate the 2019 inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. How does Computrons utilization of assets stack up against that of other firms in its industry?
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Walker Telecommunications has a quick ratio of 2.00x, $35,550 in cash, $19,750 in accounts receivable, some inventory, total current assets of $79,000, and total current liabilities of $27,650. The company reported annual sales of $200,000 in the most recent annual report. Additionally, the company’s cost of goods sold is 75% of sales. Over the past year, how often did Walker Telecommunications sell and replace its inventory? 8.01x 2.86x 6.33x 6.96x The inventory turnover…
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Walker Telecommunications has a quick ratio of 2.00x, $35,550 in cash, $19,750 in accounts receivable, some inventory, total current assets of $79,000, and total current liabilities of $27,650. The company reported annual sales of $200,000 in the most recent annual report. Over the past year, how often did Walker Telecommunications sell and replace its inventory? 8.01x 8.44x 9.28x 2.86x The inventory turnover ratio across companies in the telecommunications industry is…
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Walker Telecommunications has a quick ratio of 2.00x, $35,550 in cash, $19,750 in accounts receivable, some inventory, total current assets of $79,000, and total current liabilities of $27,650. The company reported annual sales of $200,000 in the most recent annual report. Over the past year, how often did Walker Telecommunications sell and replace its inventory? A---8.01x B---2.86x C---9.28x D---8.44x The inventory turnover ratio across companies in the telecommunications industry is 9.284x. Based on this…
GIVE AN INTERPRETATION OF THESE RATIOS CONCLUSIVELY Acid test ratio = (total current asset – inventory – prepaid expenses) / total current liability Total asset turnover = 1.918 times Gearing ratio = 0.2243 or 22.43% Gross profit margin = 0.361 or 36.1% Net profit margin = 0.1143 or 11.43% Return on capital employed = 0.2664 or 26.64% Current ratio = 2.1753 times Acid test ratio = 1.0413 times Receivables days = (Trade Receivables/Net Sales) * 365 = (74480/768400) *365 = 36 days Payables days = (Trade Payables/ Net Purchases) * 365 = (72000/460400) *365 = 58 days Inventory Days = (Inventory/ Cost of goods sold) * 365 = (84000/476400) * 365 = 65 days Gross Profit Margin (GPM) = 292000/808800*100= 36.10% Net Profit Margin (NPM) = 92480/808800 *100 = 11.43% Return on Capital Employed (ROCE) = 92480/327080*100 = 28.27% Current ratio = 162280/74600= 2.17 Acid test ratio = (162280- 84000)/74600= 1.049 Total asset turnover = Sales revenue / Total average asset…
Asset turnover ratioFinancial statement data for years ended December 31, 20Y3 and 20Y2, for EdisonCompany follow:a. Determine the asset turnover ratio for 20Y3 and 20Y2.b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable orunfavorable?