Ratio Industry Ratios GnG Ratios 1. Current Ratio 5.3 7.08 2. Acid Test Ratio 5.1 6.8 3. Gross Profit Ratio 30% 40%

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 58BE: Liquidity Ratios JRLs financial statements contain the following information: Required: 1. What is...
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Ratio

Industry Ratios

GnG Ratios

1. Current Ratio

5.3

7.08

2. Acid Test Ratio

5.1

6.8

3. Gross Profit Ratio

30%

40%

4. Net Income Margin

7.5%

18.2%

5. Receivable Turnover Ratio

9

14.41

6. Return on Asset Ratio

12%

9.29%

7. Debt to Asset Ratio

1:4

1 : 1

 

Interpretation and verbal analysis compared to industry ratios:

1. Liquidity

 

2. Profitability

 

3. Solvency

 

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