a) | Value/Ratio | This year | Last year |
Working capital | $ 2,63,400 | $ 1,60,500 | |
Current ratio | 2.35:1 | 1.65:1 | |
Free cash flow | $ 67,800 | $ 48,700 | |
Debt to assets ratio | 38% | 31% | |
Earnings per share | $ 3.06 | $ 3.15 | |
b) | Liquidity: | ||
The liquidity position has improved during the year. The NWC has | |||
increased during the year by more than $100000 and the current ratio is | |||
well beyond the standard ratio of 2:1. In contrast the current ratio is | |||
lower than the standard ratio during last year. | |||
Solvency: | |||
Debt proportion has increased during the year from 31% to 38% | |||
indicating higher financial leverage. | |||
Profitability: | |||
EPS has decreased indicating lower NI avaiable to common stock | |||
shareholders' per share. |
I need answer for B 80 2 A Further Look at Financial Statements (a) Comment on...
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