Please solve the following problems (From chapter Problems) Chapter 3: Problem 3-14 (pages: 129 – 131) Chapter 4: Case Study: a. through h. only (page 192) Please use the following login...

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Please solve the following problems (From chapter Problems)



Chapter 3: Problem 3-14 (pages: 129 – 131)


Chapter 4: Case Study: a. through h. only (page 192)



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Answered 2 days AfterOct 27, 2021

Answer To: Please solve the following problems (From chapter Problems) Chapter 3: Problem 3-14 (pages: 129 –...

Rochak answered on Oct 30 2021
123 Votes
Chapter 3
3-14
    Ratio
    Jimenex
    Industry Average
    Quick Ratio
    0.85
    1.00
    Current Ratio
    2.33
    2.70
    Inventory Tu
rnover
    4.00
    7.00
    Days sales outstanding
    91.15
    32.00
    Fixed Assets Turnover
    9.95
    13.00
    Total Asset Turnover
    2.34
    2.60
    Return on assets
    5.90%
    9.10%
    Return on equity
    13.07%
    18.20%
    Profit margin on sales
    2.53%
    3.50%
    Debt to Assets ratio
    22.02%
    21.00%
    Liabilities to assets ratio
    54.81%
    50.00%
    P/E Ratio
    5.00
    6.00
    Market/Book Ratio
    0.65
    3.50
When comparing the ratio for Jimenex with the Industry average we can see that the company is performing bad in almost all the financial metrics, because all the metric which should be more than the industry average to say that the company is good are low, and the one which should be low to say that the company is good, are on the higher side and therefore it can be said that the company is not performing very good when compared to the industry average.
The company’s strengths are:
· Current Ratio: Though the industry average is 2.7, but the ideal current ratio for any company is 2, so the company is well positioned in that
· Profitability: The company is profitable and is generating a return of 13.07% for the equity...
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