Financial Analysis Butler Lumber

Financial Analysis - APPENDIX A Financial Analysis Financial Ratios First Quarter 1998 1989 1990 1991 Liquidity& Indetedness Current Ratio 1.80

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

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

Unformatted text preview: APPENDIX A: Financial Analysis Financial Ratios First Quarter 1998 1989 1990 1991 Liquidity & Indetedness Current Ratio 1.80 1.59 1.45 1.35 Liquidity Ratio or Acid Test 0.881 0.720 0.669 0.545 Debt Ratio 54.55% 58.70% 62.70% 67.37% Debt to Equity Ratio 1.2 1.4 1.7 2.1 Ratios Appraising Funds Management - Turnover Relationship Average Daily Sales 4.71 5.59 7.48 7.98 Accounts Receivable 36.28 39.70 42.36 43.25 Inventory Turnover 5.11 4.41 4.67 Profitability Ratios Return on Assets 5.22% 4.62% 4.72% Profit Margin 1.83% 1.69% 1.63% Gross Margin 27.99% 28.61% 27.62% 27.30% Asset Turnover 2.857 2.735 2.887 Profit Percentage on Assets 5.22% 4.62% 4.72% BUTLER LUMBER COMPANY Current Ratio: This ratio is declining showing that liabilities is increasing or assets are decreasing. In BLC’s case, both are growing but liabilities are going proportionately greater than assets. Acid Ratio Test: This ratio is below one and decreasing every year. This is perhaps the most important ratio in the analysis of BLC. It shows that current liabilities exceed the most liquid of BLC’s assets. BLC is incapable of the analysis of BLC....
View Full Document

This note was uploaded on 05/11/2008 for the course AEM 2220 taught by Professor Perez,p.d. during the Spring '06 term at Cornell University (Engineering School).

Page1 / 2

Financial Analysis - APPENDIX A Financial Analysis Financial Ratios First Quarter 1998 1989 1990 1991 Liquidity& Indetedness Current Ratio 1.80

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online