The company’s ratios are: Current ratio = 1.58% Quick ratio = 1.53% operating margin = 3.49% profit margin = 1.86% return on total assets (ROA) = 1.75% return on common equity (ROE) = 7.03% PE ratio = 24.50% You are an investor with a large sum of money (or a company looking for an investment) and buying either the company or shares of stock in the company is being considered. Determine, based on the company’s financials and its future business prospects, whether you will invest in this company or not. In order to support your conclusions, be sure to reference your ratios and ratio analysis.
The company’s ratios are: Current ratio = 1.58% Quick ratio = 1.53% operating margin = 3.49% profit margin = 1.86% return on total assets (ROA) = 1.75% return on common equity (ROE) = 7.03% PE ratio = 24.50% You are an investor with a large sum of money (or a company looking for an investment) and buying either the company or shares of stock in the company is being considered. Determine, based on the company’s financials and its future business prospects, whether you will invest in this company or not. In order to support your conclusions, be sure to reference your ratios and ratio analysis.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 6CP: The average liabilities, average stockholders' equity, and average total assets are as follows: 1....
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The company’s ratios are:
Current ratio = 1.58%
Quick ratio = 1.53%
operating margin = 3.49%
profit margin = 1.86%
PE ratio = 24.50%
You are an investor with a large sum of money (or a company looking for an investment) and buying either the company or shares of stock in the company is being considered. Determine, based on the company’s financials and its future business prospects, whether you will invest in this company or not. In order to support your conclusions, be sure to reference your ratios and ratio analysis.
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