a. Perform a DU point analysis of Eldercare Inc, Assume that the industry average ratios are as follows:
Total margin 3.5%
Total asset turnover 1.5
equity multiplier 2.5
return on equity 13.1%
b. calculate and interpret the following ratios:
Industry Average
Return on Assets 5.2%
current raio 2.0
days cash on hand 22 days
days in patient acct care 19 days
debt ratio 71%
Debt to equity ratio 2.5
Times-Int-earned-ratio 2.6
Fixed asset turnover rato 1.4