Homework Answers
| a. | For deciding which company is more liquid we have to analyze the Liquidity ratios. | |||||||
| The more the liquidity ratio is the better is the liquidity for the company. | ||||||||
| From the above ratios given Shaw has better liquidty then Rogers as the Current ratio, | ||||||||
| Acid-test ratio and Receivable Turnover ratio are higher for Shaw | ||||||||
| b. | For determining the solvency we have to analyze the Solvency ratios. | |||||||
| Under the 2 solvency ratios given of Debt to Total Asset and Interest coverage ratio | ||||||||
| the lesser the ratio it is better for the company because it will mean that the company with | ||||||||
| a less ratio means that it is using less debt and the interest expenses is also low | ||||||||
| In this case Shaw is better as its Debt to total assets is lower | ||||||||
| c. | In all the Profitability ratio Shaw company is better in all the indicators as the Profit margin ratios | |||||||
| and ROA better than that of Rogers. However as far as ROE is concerned Rogers is giving a better return than shaw | ||||||||
| As per the given data Rogers is commanding a higher P/E ratio then Shaw, it means that investors are preferring | ||||||||
| Rogers over Shaw as investors are willing to give 17.4 times of its earnings as compared to Shaw's 13.7 times | ||||||||
| The investors behaviour is not consistent with the analysis of part © | ||||||||
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18-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. Evaluate ratios....
do part a),b),c) & Taking it further P18-10B The following ratios are available for Rogers Communications...
do
part a),b),c) & Taking it further
P18-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. Evaluat for a recent year: (LO 4, Liquidity Rogers Shaw Current ratio 0.48:1 0.95:1 Acid-test ratio 0.36:1 0.81:1 Receivables turnover 8.3 times 10.7 times Solvency Debt to total assets 79.3% 63.7% Interest coverage 3.3 times 5.5 times Profitability Profit margin 10.4% 16.9% Asset turnover 0.5 times 0.4 times Return on assets 5.4% 6.8% Return on equity 26.4% 19.0% Instructions...
pally is using leverage more effectively? Explain. The The following ratios are available for Rogers Communications...
pally is using leverage more effectively? Explain. The The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. PI8- for a recent year: ns Inc. and Shaw Communications Inc. Evaluate ratios. (LO 4,5,6) AN Rogers Shaw 0.48:1 0.36:1 0.81:1 8.3 times 10.7 times 0.95:1 Liquidity Current ratio Acid-test ratio Receivables turnover Solvency Debt to total assets Interest coverage Profitability Profit margin Asset turnover Return on assets Return on equity 79.3% 3.3 times 63.7% 5.5 times 10.4% 0.5...
PI8-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications for a recent...
PI8-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications for a recent year: Liquidity Rogers Shaw Current ratio Acid-test ratio Receivables turnover 0.48:1 0.95:1 0.36:1 8.3 times 0.81:1 10.7 times Solvency Debt to total assets 79.3% 63.7% Interest coverage 3.3 times 5.5 times nid Profit margin uho Profitability Salto 10.4% 16.9% Asset turnover 0.5 times 0.4 times Return on assets 5.4% 6.8% Return on equity 26.4% 19.0% Instructions (a) Which company is more liquid? Explain. (b)...
TAKING IL FURTHER Which company is using leverage more effectiverys expiam. 16.9% PIS-10B The following ratios...
TAKING IL FURTHER Which company is using leverage more effectiverys expiam. 16.9% PIS-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. Evaluate ratios. for a recent year: (LO 4,5,6) AN Liquidity Rogers Shaw Current ratio 0.48:1 0.95:1 Acid-test ratio 0.36:1 0.81:1 Receivables turnover 8.3 times 10.7 times Solvency Debt to total assets 79.3% 63.7% Interest coverage 3.3 times 5.5 times Profitability Profit margin 10.4% Asset turnover 0.5 times 0.4 times Return on assets 5.4% 6.8%...
RATIOS Communications/Electronics AT&T Sprint ANALYSIS Profitability Ratios (%) Gross Margin 59.02 54.23 58.08 EBITDA Margin -...
RATIOS Communications/Electronics AT&T Sprint ANALYSIS Profitability Ratios (%) Gross Margin 59.02 54.23 58.08 EBITDA Margin - - - Operating Margin 16.23 13.84 -2.89 Pre-Tax Margin 13.79 9.59 -10.1 Effective Tax Rate 18 18.91 -1.8 Financial Strength Quick Ratio 1 0.52 0.26 Current Ratio 1.02 0.81 0.67 LT Debt to Equity 145.46 87.2 196.43 Total Debt to Equity 160.44 96.06 196.43 Interest Coverage - - - Valuation Ratios Price/Earnings Ratio 65.95 11.21 203.67 Price to Sales P/S 1.91 1.18 1.09 Price...
Essay: Explain what each of the ten ratios mean and how cach should be used to evaluate the financial health of th...
Essay: Explain what each of the ten ratios mean and how cach should be used to evaluate the financial health of the company (250-300 words). 1. Liquidity Current Ratio 2. Activity Average Collection Period Total Asset Turnover 3. Debt Debt Ratio Times Interest Earned 4. Profitability Net Profit Margin (NPM) Return of Assets (ROA) Return on Equity (ROE) Earnings Per Share (EPS) 5. Market Ratios Price/Earning (PE) Ratio
Financial Analysis The following financial results are shown for East, Inc. and West, Inc. East, Inc....
Financial Analysis The following financial results are shown for East, Inc. and West, Inc. East, Inc. West, Inc. Ratios Current ratio 2.5 2.3 1.2 Acid test ratio Accounts receivable turnover 8.4 times 8.8 times Inventory turnover 4.7 times 5.1 times Days sales in inventory 59 days 54 days Days sales uncollected 34.2 days 29.7 days Profit margin ratio 3.2 2.8% Total asset turnover 11 9 Return on common stockholder 4.6% 4.1% equity Price earnings ratio 28.8 Dividend yield 90 Debt...
1.What four ratios would you use to evaluate a service business and why? 2.Reviewing Stryker Corporation's...
1.What four ratios would you use to evaluate a service
business and why?
2.Reviewing Stryker Corporation's four years of ratios on page
65 of your text, what trends do you see and what are your
suggestions for improvement?
3.How does Accounts Receivable Turnover relate to Number of
Days Sales in Receivables?
4.What does context mean in ratio analysis and how did we use
it to analyze the Stryker Corporation?
Chapter 2 Eluting Financial Performance 65 TABLE 22 Ratio Analysis of...
Do part of the financial analysis project. Using the correct financial ratios evaluate the company with...
Do part of the financial analysis project. Using the correct financial ratios evaluate the company with regard to its short-term liquidity, long-term solvency and profitability. See pages 604 and 605 for which financial ratios should be used to evaluate each category. Your evaluation declare whether Key Tronic is: strong, above average, average, below average, weak, for each short-term liquidity, long-term solvency and profitability. Be sure to mention the financial ratio you are looking at in making this determination and it...
[The following information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC. Income Statement...
[The following information applies to the questions
displayed below.]
Income statement and balance sheet data for Great Adventures,
Inc., are provided below.
GREAT ADVENTURES, INC.
Income Statement
For the Year Ended December 31, 2020
Revenues:
Service revenue (clinic, racing,
TEAM)
$535,000
Sales revenue (MU watches)
110,000
Total
revenues
$645,000
Expenses:
Cost of goods sold (MU
watches)
66,000
Operating expenses
303,876
Depreciation expense
46,000
Interest expense
29,324
Income tax expense
54,600
Total
expenses
499,800
Net income
$145,200
GREAT ADVENTURES, INC.
Balance...
do
part a),b),c) & Taking it further
P18-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. Evaluat for a recent year: (LO 4, Liquidity Rogers Shaw Current ratio 0.48:1 0.95:1 Acid-test ratio 0.36:1 0.81:1 Receivables turnover 8.3 times 10.7 times Solvency Debt to total assets 79.3% 63.7% Interest coverage 3.3 times 5.5 times Profitability Profit margin 10.4% 16.9% Asset turnover 0.5 times 0.4 times Return on assets 5.4% 6.8% Return on equity 26.4% 19.0% Instructions...
pally is using leverage more effectively? Explain. The The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. PI8- for a recent year: ns Inc. and Shaw Communications Inc. Evaluate ratios. (LO 4,5,6) AN Rogers Shaw 0.48:1 0.36:1 0.81:1 8.3 times 10.7 times 0.95:1 Liquidity Current ratio Acid-test ratio Receivables turnover Solvency Debt to total assets Interest coverage Profitability Profit margin Asset turnover Return on assets Return on equity 79.3% 3.3 times 63.7% 5.5 times 10.4% 0.5...
PI8-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications for a recent year: Liquidity Rogers Shaw Current ratio Acid-test ratio Receivables turnover 0.48:1 0.95:1 0.36:1 8.3 times 0.81:1 10.7 times Solvency Debt to total assets 79.3% 63.7% Interest coverage 3.3 times 5.5 times nid Profit margin uho Profitability Salto 10.4% 16.9% Asset turnover 0.5 times 0.4 times Return on assets 5.4% 6.8% Return on equity 26.4% 19.0% Instructions (a) Which company is more liquid? Explain. (b)...
TAKING IL FURTHER Which company is using leverage more effectiverys expiam. 16.9% PIS-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. Evaluate ratios. for a recent year: (LO 4,5,6) AN Liquidity Rogers Shaw Current ratio 0.48:1 0.95:1 Acid-test ratio 0.36:1 0.81:1 Receivables turnover 8.3 times 10.7 times Solvency Debt to total assets 79.3% 63.7% Interest coverage 3.3 times 5.5 times Profitability Profit margin 10.4% Asset turnover 0.5 times 0.4 times Return on assets 5.4% 6.8%...
Essay: Explain what each of the ten ratios mean and how cach should be used to evaluate the financial health of the company (250-300 words). 1. Liquidity Current Ratio 2. Activity Average Collection Period Total Asset Turnover 3. Debt Debt Ratio Times Interest Earned 4. Profitability Net Profit Margin (NPM) Return of Assets (ROA) Return on Equity (ROE) Earnings Per Share (EPS) 5. Market Ratios Price/Earning (PE) Ratio
Financial Analysis The following financial results are shown for East, Inc. and West, Inc. East, Inc. West, Inc. Ratios Current ratio 2.5 2.3 1.2 Acid test ratio Accounts receivable turnover 8.4 times 8.8 times Inventory turnover 4.7 times 5.1 times Days sales in inventory 59 days 54 days Days sales uncollected 34.2 days 29.7 days Profit margin ratio 3.2 2.8% Total asset turnover 11 9 Return on common stockholder 4.6% 4.1% equity Price earnings ratio 28.8 Dividend yield 90 Debt...
1.What four ratios would you use to evaluate a service
business and why?
2.Reviewing Stryker Corporation's four years of ratios on page
65 of your text, what trends do you see and what are your
suggestions for improvement?
3.How does Accounts Receivable Turnover relate to Number of
Days Sales in Receivables?
4.What does context mean in ratio analysis and how did we use
it to analyze the Stryker Corporation?
Chapter 2 Eluting Financial Performance 65 TABLE 22 Ratio Analysis of...
Do part of the financial analysis project. Using the correct financial ratios evaluate the company with regard to its short-term liquidity, long-term solvency and profitability. See pages 604 and 605 for which financial ratios should be used to evaluate each category. Your evaluation declare whether Key Tronic is: strong, above average, average, below average, weak, for each short-term liquidity, long-term solvency and profitability. Be sure to mention the financial ratio you are looking at in making this determination and it...
[The following information applies to the questions
displayed below.]
Income statement and balance sheet data for Great Adventures,
Inc., are provided below.
GREAT ADVENTURES, INC.
Income Statement
For the Year Ended December 31, 2020
Revenues:
Service revenue (clinic, racing,
TEAM)
$535,000
Sales revenue (MU watches)
110,000
Total
revenues
$645,000
Expenses:
Cost of goods sold (MU
watches)
66,000
Operating expenses
303,876
Depreciation expense
46,000
Interest expense
29,324
Income tax expense
54,600
Total
expenses
499,800
Net income
$145,200
GREAT ADVENTURES, INC.
Balance...
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