CORPORATE FINANCE- ACCESS >C<
12th Edition
ISBN: 9781307447248
Author: Ross
Publisher: MCG/CREATE
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Chapter 3, Problem 15QAP
Summary Introduction
To compute: The net fixed assets of the firm.
Introduction: The
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Using the ratios below, summarize the financial performance of the company.
LIQUIDITY RATIOS
Current Ratio (times)
1.75
Quick Ratio (times)
0.52
Average Payment Period (days)
28.31 Days
ASSET MANAGEMENT RATIOS
Total Asset Turnover (times)
2.90
Average Collection Period (days)
24 Days
Inventory Turnover (times)
5.70
FINANCIAL LEVERAGE RATIOS
Total Debt to Total Assets
0.37%
Equity Multiplier (times)
1.59
PROFITABILITY RATIOS
Operating Profit Margin
5.66%
Net Profit Margin
3.55%
Return on Total Assets
16.57%
Return on Equity
16.36%
Earnings per Share
$0.99
The ratio of liabilities to stockholders' equity measures how much of the company is financed by debt and equity. It is computed as follows:
To illustrate, the ratio of liabilities to stockholders' equity for Lincoln Company is computed as follows
Current Assets
-
CurrentLiabilities
=
Calculated Value
1.
Working capital:
Ratio
Numerator
÷
Denominator
=
Calculated Value
2.
Current ratio
3.
Quick ratio
4.
Accounts receivable
turnover
5.
Number of days'
sales in receivables
6.
Inventory turnover
7.
Number of days'
sales in inventory
8.
Ratio of Fixed assets to
long-term liabilities…
Given the following information for the Duke Tire Company, find the firm's debt ratio (i.e., total liabilities / total assets): ROE (N/E) = 0.37 (expressed as a decimal) Total asset turnover ratio (S/A) = 2.2 Net profit margin (N/S) = 0.09 (expressed as a decimal)
Chapter 3 Solutions
CORPORATE FINANCE- ACCESS >C<
Ch. 3 - Financial Ratio Analysis A financial ratio by...Ch. 3 - Industry-Specific Ratios So-called same-store...Ch. 3 - Sales Forecast Why do you think most long-term...Ch. 3 - Sustainable Growth In the chapter, we used...Ch. 3 - EFN and Growth Rate Broslofski Co. maintains a...Ch. 3 - Common-Size Financials One tool of financial...Ch. 3 - Asset Utilization and EFN One of the implicit...Ch. 3 - Comparing ROE and ROA Both ROA and ROE measure...Ch. 3 - Ratio Analysis Consider the ratio EBITD/Assets....Ch. 3 - Return on Investment A ratio that is becoming more...
Ch. 3 - Use the following information to answer the next...Ch. 3 - Prob. 12CQCh. 3 - Use the following information to answer the next...Ch. 3 - Use the following information to answer the next...Ch. 3 - Use the following information to answer the next...Ch. 3 - DuPont Identity If Muenster, Inc., has an equity...Ch. 3 - Equity Multiplier and Return on Equity Synovec...Ch. 3 - Prob. 3QAPCh. 3 - EFN The most recent financial statements for...Ch. 3 - Prob. 5QAPCh. 3 - Sustainable Growth If the Moran Corp. has an ROE...Ch. 3 - Prob. 7QAPCh. 3 - Prob. 8QAPCh. 3 - Prob. 9QAPCh. 3 - Prob. 10QAPCh. 3 - Prob. 11QAPCh. 3 - Prob. 12QAPCh. 3 - External Funds Needed The Optical Scam Company has...Ch. 3 - Days' Sales in Receivables A company has net...Ch. 3 - Prob. 15QAPCh. 3 - Prob. 16QAPCh. 3 - Prob. 17QAPCh. 3 - Prob. 19QAPCh. 3 - Prob. 20QAPCh. 3 - Calculating EFN The most recent financial...Ch. 3 - Prob. 22QAPCh. 3 - Prob. 23QAPCh. 3 - Prob. 26QAPCh. 3 - Prob. 27QAPCh. 3 - Prob. 28QAPCh. 3 - Prob. 29QAPCh. 3 - Prob. 30QAPCh. 3 - Calculate all of the ratios listed in the industry...Ch. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MC
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