Presentation - Overall Health of the Company Overall Health...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Overall Health of the Company Overall Health of the Company Lebo & Co. Liquidity – Profitability – Current Ratio = 6.36 Quick Ratio = 5.29 Return on Sales = ­1.87% Return of Equity = ­2.39% Inventory Turnover = 15.8 Liquidity – Current & Quick Ratio Very High Profitability – Safe for granting short term credit Activity – Activity – Return on Sales – Very low, no profit, net loss. Return on Equity ­ Very low, no profit, net loss Inventory Turnover – Very high turnover, could mean lost potential sales. Conclusions Conclusions Lebo & Co. Overall Company is not Budgeted for a Profitable Future. Possible Solutions According to Ratios Company Not Profitable Raise Unit Selling Price Cut Expenses Negative Return on Sales Negative Return on Equity Not a Healthy Company Under Current Budgeting ...
View Full Document

Ask a homework question - tutors are online