FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
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Students have asked these similar questions
(A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the following ratios in your computations:
1. Profitability ratios
Gross Profit margin
Profit margin
Return on assets
Return on equity
2. Productivity
Inventory Turnover
Accounts Receivable Turnover
PPE Turnover
Asset Turnover
3. Solvency
Debt-to-equity
Times interest earned
Return on Financial leverage
4. Liquidity
Current Ratio
Quick Ratio
Operating cash flow to current liabilities
Working capital
Instructions
Using the financial statements and additional information, compute the following ratios for the El
Camino Company for 2021. Show all computations.
Computations
1. Current ratio
2. Return on common stockholders' equity
3.
Price-earnings ratio
4.
Inventory turnover
5. Accounts receivable turnover
6.
Times interest earned
7.
Profit margin
8.
Days in inventory
9.
Payout ratio
10. Return on assets
As part of your analysis, you are required to investigate DEVCON
Industries' cash flows and selected ratios.
Required: Using the financial statement provided on page 1:
(a) Compute the following ratios for DEVCON Industries for 2018 and
2019:
i. Return on Equity using Du Pont Identity
ii. Earnings Per Share (EPS
iii. Price/Earning (P/E) Ratio
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