View the step-by-step solution to:

2016 2015 2014 0.78 16% 2% 74.91 15.89 59.43 31.1883 1.59 16% 2% 65.64 15.62 53.33 27.202 AutoNation Current Ratio Quick Ratio Debt/Equity Ratio...

Do a Ratio Analysis comparing the years 2014, 2015, and 2016. Compare the ratios to past performances and talk about what the ratios mean for the company. The Company is AutoNation and attached is the excel sheet with the ratios. The only ratios I need compared and analyzed are:


  1. Cash Conversion Cycle (CCC)
  2. Quick Ratio
  3. Current Ratio.


At least one good paragraph for each ratio!

Thank you very much!!

2016 2015 2014 AutoNaTon Current RaTo 0.81 0.91 1.03 Quick RaTo 0.20 0.21 0.28 Debt/Equity RaTo 3.35 3.06 3.05 ±imes Interest Earned 4.66 5.84 5.87 Equity MulTplier 4.35 4.06 4.05 Asset ±urnover 6.14 5.78 6.59 Gross Margin 15% 16% 16% Net Margin 2% 2% 2% DIO 70.23 74.91 65.64 DSO 17.45 15.89 15.62 DPO 52.12 59.43 53.33 CCC 35.55 31.37 27.93 ROE 0.1863 0.1883 0.202 Asbury Current RaTo 1.21 Quick RaTo 0.40 Debt/Equity RaTo 7.35 ±imes Interest Earned 4.55 Equity MulTplier 8.35 Asset ±urnover 7.29 Gross Margin 16% Net Margin 3% DIO 59.72 DSO 17.95 DPO 20.63 CCC 57.04 ROE 0.5977
Background image of page 1
Sign up to view the entire interaction

Top Answer

View the full answer
Ratio analysis.docx

Cash conversion cycle is the length of time a business takes to convert its
resource inputs into cash inflows. The metric is calculated by adding days
inventory outstanding, days sales outstanding...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online