Question

reflect on which ratio category SNEAK should focus on, in terms of areas of improvement. how might they improve those ratios?

B SNEAK HERMES 1.36 0.64 1.44 0.87 47.97 5.47 1.75 28.18 10.12 1.75 3.02 68.11%% 2.15 42.15% 1 Financial Ratios Comparison 2 3 Liquidity Ratios 4 Current ratio 5 Quick Ratio 6 7 Asset Management Ratios 8 Days sales outstanding 9 Inventory turnover (sales/inventory) 10 Total asset turnover 11 12 Debt ratios 13 Times interest earned 14 Total debt to capital 15 16 Market ratios 17 Profit margin 18 ROA 19 ROE 20 ROIC 21 22 Other 23 Operating margin 24 P/E ratio 25 EPS 26 Market to book 27 Basic earning power 28 Book value per share 29 Dividend per share 30 31 32 33 2.07% 3.62% 13.9196 1.05% 3.58% 12.98% 7.02% 4.25% 4.75% 12 $3.62 1.67 8.31% $26.00 $1.27 4.88% 13.00% $3.55 1.98 8.51% $25.59 $0.50 34

Answer 1

SNEAK's liquidity ratio can be improved and it should focus on the quick ratio in particular. Quick ratio can be improved by having more liquid asset like cash and cash equivalents, market securities and receivables.