finance

finance - RunningHead:RatioAnalysisforFoxManufacturingCo....

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Running Head: Ratio Analysis for Fox Manufacturing Co. 1   |   P a g e Topic: Ratio Analysis for Fox Manufacturing Company Course # BUSM 303 Team Assignment Instructor: XXX Student Name: Philip Email: xxx January 26 th , 2011
Background image of page 1

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

View Full DocumentRight Arrow Icon
Ratio Analysis 2   |   P a g e Answer 3 – 11 [a] Ratio Industry Average, 2003 Actual Ratio, 2003 [see Appendix A] Net Working Capital $ 125,000 $ 63,300 Current Ratio 2.35 1.84 Quick Ratio 0.87 0.75 Average age of inventory 80.2 days 65 days Average collection period 35.3 days 21 days Fixed asset turnover 1.59 2 Total asset turnover 1.09 1.47 Debt ratio 30.0% 55% Debt/Equity ratio 45.1% 82% Times interest earned ratio 12.3 8 Gross margin 20.2% 23% Operating margin 13.5% 13% Profit margin 9.1% 7.15% Return on total assets [ROA] 9.9% 10.5% Return on equity [ROE] 16.7% 23.4% Earnings per share [EPS] $3.10 $2.14
Background image of page 2
Ratio Analysis 3   |   P a g e Answer 3 – 11 [b] Liquidity ratio Liquidity ratios are used to determine a company’s ability to pay off their short-terms debts. The calculations of the current and quick ratios show a weaker position relative to the industry average. Asset management ratio or Activity ratios Asset management ratios specify a faster turnover of assets compared to the industry average. This analysis helps us to determine that the firm has a stronger position than the
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 9

finance - RunningHead:RatioAnalysisforFoxManufacturingCo....

This preview shows document pages 1 - 4. Sign up to view the full document.

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