a) Fixed Assests Turnover is increasing meaning you are using your assets better than previous period. The assets have generated higher revenue per unit of fixed assets than previous period.
b) Total asset turnover is decreasing meaning you have accumulated large amount of non-fixed assets ; the proportion of contribution of revenue per unit of current assets has gone down
c) Accounts receivable to working capital is decreasing . Here assuming Working capital is negative i.e. Current Liabilities > Current Assets, then we can say that Account Recievables have considerably increased. This expalins the reduction of Total assets turnover as Accounts Recievables is a part of current assets which are increasing.
d) LT liabilities for the firm is increasing . The company is using more debt financing .
e) Sales are increasing but assets are increasing at higher rate
Choice Hotels 30, Ratios 20186 Dec. 31,2017 Formulas Current ratio current ratio current assets/current iabilities working...
Prepare a detailed Balance Sheet and also calculate the following ratios: A) Current Ratio B) Working Capital C) Assets Turnover D) Fixed Assets Turnover E) A/R Turnover F) Debt Ratio $ 4.800 5,250 5,300 3,000 30,300 Accounts eceivable Prepaid advertising. .. . Trucks._.. . $10,000 Equipment . . . . Accumulated depreciation-Equipment... Accounts payable... Uneaned service fees . . 7,600 2,100 6.700 10,000 16,050 Retained eamings Service fees eaned... Rent expense.. 7.500 80,500 29,800 10,200 4,900 8,000
Consolidated Balance Sheets - USD ($) $ in Thousands Jun. 30, 2018 Dec. 31, 2017 Current assets Cash and cash equivalents $ 37,148 $ 235,336 Receivables (net of allowance for doubtful accounts of $14,087 and $12,221, respectively) 186,034 125,870 Income taxes receivable 50 0 Notes receivable, net of allowance 29,237 13,256 Other current assets 30,683 25,967 Total current assets 283,152 400,429 Property and equipment, at cost, net 112,567 83,374 Goodwill 173,741 80,757 Intangible assets, net 248,469 100,492 Notes receivable, net...
Prepare a detailed Balance Sheet and also calculate the following ratios: A) Current Ratio B) Working Capital C) Assets Turnover D) Fixed Assets Turnover E) A/R Turnover F) Debt Ratio $ 2,700 3.270 Supplies. Prepaid insurance Accumulated depreciation Equipment Long-term notes payable. 1,500 6,400 . . $ 1,080 845 7,000 3,000 5,205 2,900 Service fees eamed... . 62,400 15,000 33,400 4,700 3,250 720 $79,530 $79,530
A. Required: 1. Please calculate the following ratios and amounts: a) working capital, b) current ratio, c) acid-test ratio, d) cash to current liabilities ratio, e) days’ sales in receivables (based on ending accounts receivables), f) days’ sales in inventory (based on cost of goods and ending inventory), g) operating cycle, h) total debt to equity ratio and i) times interest earned. For your calculations, assume that a year amounts for 360 days The balance sheet and the income statement...
Statement of financial position as at 30 June 2018 2020 ($) 2019 ($) Current Assets Cash and cash equivalents Trade Receivables Inventories Total current assets Non-current assets Total Assets 2,300 13,400 90,502 106,202 480,750 586,952 2,370 17,175 143,955 163,500 435,750 599,250 1,896 15,458 158,350 175,704 398,175 573,879 23.175 150,000 173,175 23,287 120,000 143,287 24,153 100,000 124,153 Current liabilities Long-term borrowings Total liabilities Equity Share Capital Retained Earnings Total Equity Total equity and liabilities 338,250 75,527 413,777 586,952 338,250 117,713 455,963...
A. Required: 1. Please calculate the following ratios and amounts: a) working capital, current ratio, acid-test ratio, cash to current liabilities ratio, days’ sales in receivables (based on ending accounts receivables), days’ sales in inventory (based on cost of goods and ending inventory), operating cycle, total debt to equity ratio and times interest earned. For your calculations, assume that a year amounts for 360 days The balance sheet and the income statement of “Omega” Company containing data in € is...
A. Required: 1. Please calculate the following ratios and amounts: a) working capital, current ratio, acid-test ratio, cash to current liabilities ratio, days’ sales in receivables (based on ending accounts receivables), days’ sales in inventory (based on cost of goods and ending inventory), operating cycle, total debt to equity ratio and times interest earned. For your calculations, assume that a year amounts for 360 days The balance sheet and the income statement of “Omega” Company containing data in € is...
Refer to Dino's information below and calculate the following ratios: Working capital ratio, quick ratio/acid test, earnings per share, price-earnings ratio, debt-equity ratio, and return on equity. Clearly provide each formulae, numbers and work associated, along with the answers. For each ratio you calculated, provide an analytic statement in which you comment on how the ratio can affect specific decisions that need to be made within the organization. Notes: Each statement must be at least one full paragraph, explaining the...
Complete ratio analysis for the years 2010 through 2014, calculating the following ratios (2 marks each). Use the unaudited data for 2014. For any ratios that use an average of 2 years in the formula, you can assume that the 2010 ending balance approximates the 2010 average. (The ratios that use an average of 2 years in the formula include accounts receivable turnover, inventory turnover, return on assets, and return on equity.) You are not given the 2009 data to...
Using the financial ratios provided in Table 4.1 and the financial statement infor- mation presented below for Costco Wholesale Corporation, calculate the follow ing ratios for Costco for both 2013 and 2014: a. Gross profit margin b. Operating profit margin c. Net profit margin d. Times-interest-earned (or coverage) ratio e. Return on stockholders' equity 1. 1 f. Return on assets g. Debt-to-equity ratio h. Days of inventory . Inventory turnover ratio j. Average collection period Based on these ratios, did...