1. What do the liquidity, profitability and solvency ratios below reveal about the company financially?
2. Which users may in interested in each type of the three ratios?
3. What does the collected data reveal about the company's performance and position?
Liquidity Ratios:
Current ratio= 2010= 4.02 times 2011=3.64 times
Acid-test/ quick ratio: 2010= 2.93 times 2011=2.31 times
Receivables turnover: 2010= 13.33 times. 2011= 13.43 times
Inventory turnover: 2010= 5.69 times 2011= 5.7 times
Profitibility Ratios:
Asset turnover= .62
Profit Margin= 8.25%
Return on assets= 5.12%
Return on common stockholders' equity= 6.59%
Solvency Ratios:
Debt to total assets: 2010= 22.21%. 2011= 22.37%