Answer the last three questions using the information below. Instructions: Answe

Question

Answer the last three questions using the information below.

Instructions:

Answer the last three questions using the information below.

Alphabet Inc, (GOOG) Ratios Industry Average Ratio Three Year Company Ratio Results 2015 2016 2017 Year(s) Year Year Year Debt/Equity 0.03 0.225461436 0.204702379 0.293720738 Current 5.12 4.666701191 6.290761518 5.140305173 Quick Ratio 4.92 3.783842569 5.152363333 4.212504652 Return on Assets 0.1155 0.118186287 0.123686333 0.069420382 Return on Equity 0.1428 0.145839931 0.15019644 0.069420382 Net Profit Margin 0.1419 0.218005307 0.215770117 0.11422128 Instructions: Discuss the following questions throughly (2-3 sentences). What does each ratio reveal about the company? Have the ratios improved or worsened over time? Explain why you think this happened. Compare the company ratio results with the industry average ratios. What do the numbers reveal?

Explanation / Answer

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. atios Industry Average Ratio Three Year Company Ratio Results 2015 2016 2017 Question 1 Question 2 Question 3 Year(s) Year Year Year Debt/Equity 0.03 0.22546144 0.20470238 0.29372074 indicates the proportion of the company's assets that are being financed through debt. In 2017, it has worsened as more of the assets are being finance through debt comparative to industry, its very high Current 5.12 4.66670119 6.29076152 5.14030517 is the measure of liquidity. It indicates whether the business can pay debts due within one year out of the current assets It has worsened compared to year 2016 since lower Current ratio means company will not be able to pay short term obligation from current assets it is better for 2017 comparing industry Quick Ratio 4.92 3.78384257 5.15236333 4.21250465 indicates that the business can meet its current financial obligations with the available quick funds on hand. improved vs 2015. However wrosened vs 2016. as higher the ratio, better for company Indsutrsty average is better then 2017 Return on Assets 0.1155 0.11818629 0.12368633 0.06942038 this ratio measures how profitable a company's assets are Worsened as return is reducing every year on assets Indsutrsty average is better in 2017 Return on Equity 0.1428 0.14583993 0.15019644 0.06942038 shows how much profit each dollar of common stockholders' equity generates. Worsened as return is reducing every year on assets Indsutrsty average is better in 2017 Net Profit Margin 0.1419 0.21800531 0.21577012 0.11422128 indicates how much net income a company makes with total sales achieved. Worsened as return is reducing every year on assets Indsutrsty average is better in 2017

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