ANALYS - being supported less by other peoples money While...

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Serenity Witten AGEC 424 ANALYS 9/6/10 27. b. -Liquidity ratios are increasing, showing the company is being able to meet its financial obligations. -ACP is increasing. In the ending year the company’s ACP reached 116.5 days. This is a high number of days sales are outstanding. Northern Manufacturing clearly has a problem collecting money from some of its credit customers. -Inventory turnover is decreasing. This may mean some old inventory is on the books but not being used. Since this number is decreasing there may be an issue with collecting old inventory that is just becoming dead weight to the company. -Debt ratio and debt to equity ratio has decreased. This shows that the company is
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Unformatted text preview: being supported less by other peoples money. While these ratios are decreasing they are still relatively high.-ROS is increasing which is good because it shows an increase in the companys overall profitability.-ROE has decreased but is still high at 45.2% -EPS has almost doubled, which is great for the stockholders, their money invested is having good return. -P/E ratio decreased by half. Since EPS is increasing and P/E is decreasing showing that stock price is not increasing, but actually decreasing.-Market to book value ratios has decreased by more than half. This shows a lack of confidence the market has for this companys future....
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This note was uploaded on 11/08/2010 for the course AGEC 424 taught by Professor Staff during the Spring '08 term at Purdue.

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