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    Massignment3-Rena Gungon-6219 A-116

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    This document contains a student's midterm assignment analyzing financial statement ratios for a company. It includes 10 key financial ratios calculated from the company's financial statements, along with the industry averages for comparison. Most of the company's ratios are higher or lower than industry averages, suggesting areas that could be improved. The assignment provides a comprehensive analysis of the company's liquidity, asset management, debt, and profitability based on ratio calculations and comparisons to industry benchmarks.

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    Massignment3-Rena Gungon-6219 A-116

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    마리레나
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    This document contains a student's midterm assignment analyzing financial statement ratios for a company. It includes 10 key financial ratios calculated from the company's financial statements, along with the industry averages for comparison. Most of the company's ratios are higher or lower than industry averages, suggesting areas that could be improved. The assignment provides a comprehensive analysis of the company's liquidity, asset management, debt, and profitability based on ratio calculations and comparisons to industry benchmarks.

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    MASSIGNMENT3-RENA GUNGON-6219 A-116

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    This document contains a student's midterm assignment analyzing financial statement ratios for a company. It includes 10 key financial ratios calculated from the company's financial statements, along with the industry averages for comparison. Most of the company's ratios are higher or lower than industry averages, suggesting areas that could be improved. The assignment provides a comprehensive analysis of the company's liquidity, asset management, debt, and profitability based on ratio calculations and comparisons to industry benchmarks.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    20 views1 page

    Massignment3-Rena Gungon-6219 A-116

    Uploaded by

    마리레나
    This document contains a student's midterm assignment analyzing financial statement ratios for a company. It includes 10 key financial ratios calculated from the company's financial statements, along with the industry averages for comparison. Most of the company's ratios are higher or lower than industry averages, suggesting areas that could be improved. The assignment provides a comprehensive analysis of the company's liquidity, asset management, debt, and profitability based on ratio calculations and comparisons to industry benchmarks.

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    © All Rights Reserved
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    GUNGON, Rena Marie C.

    (A-116)
    TTh 10:10AM - 11:40AM

    YMATHBUSFIN - 6219
    Midterm Assignment #3: Financial Statement (Ratio) Analysis

    Problem 1

    RATIO FORMULA

    Liquidity
    Current assets 1,545,016
    Current = = = 2.14
    Current liabilities 722,000

    Current assets - Inventory 651,016


    Quick = = = 0.90
    Current liabilities 722,000

    Asset Management
    Cost of Goods Sold 3,250,000
    Inventory Turnover = = = 3.64
    Inventory 894,000

    Daily Sales Accounts Receivable 550,000


    = = = 41.69
    Outstanding (DSO) [(Annual Sales)/360] 13,192

    Sales 4,749,118
    Fixed Assets Turnover = = = 5.99
    Net Fixed Assets 793,000

    Sales 4,749,118
    Total Assets Turnover = = = 2.03
    Total Assets 2,338,016

    Debt Management
    Total Liabilities 1,222,000
    Debt Ratio = = = 0.52
    Total Assets 2,338,016

    Profitability
    Net Income 440,504
    Net Profit Margin = = = 9.28%
    Sales 4,749,118

    Net Income 440,504


    Return on Assets (ROA) = = = 18.84%
    Total Assets 2,338,016

    Net Income 440,504


    Return on Equity (ROE) = = = 39.47%
    Common Equity 1,116,016

    Ratio Industry Comment


    1. Current 2.14 1.0 HIGH
    2. Quick 0.90 2.7 LOW
    3. Inventory Turnover 3.64 5.8 LOW
    4. Daily Sales Outstanding 41.69 32 HIGH
    5. Fixed Assets Turnover 5.99 13.0 LOW
    6. Total Assets Turnover 2.03 2.6 LOW
    7. Debt Ratio 0.52 0.6 LOW
    8. Net Profit Margin 9.28% 4.0% HIGH
    9. Return on Assets 18.84% 9.1% HIGH
    10. Return on Equity 39.47% 18.2% HIGH

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