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Unformatted text preview: annually on your investment. You can earn more in a fully insured bank
savings account. $301,404 / $531,404 = $188,107 = = = The company turns over its accounts receivable 4.41
times during the year. On average, it takes 83 days for this company to collect its accounts receivable,
which is too high.
1.75 times 16.01% 42.93% 1.60 4.41 times The company turns over or sells its inventory 1.75 times during
the year, which is low. This means the company is carrying too
much inventory in stock compared to the volume of sales that it has.
Carrying too much inventory is expensive and a poor use of resources.
ROA tells us how well the company uses its assets to create profits. Debt to Equity tells us how much of a company's total financing is with debt.
= 27.69% ROE gives us profits as a percentage of shareholder's equity. It tells us
how well a company manages its operations,...
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This document was uploaded on 03/23/2014.
- Fall '14