Calculate all the ratios, for which industry figures are available below, for Wi

Question

Calculate all the ratios, for which industry figures are available below, for Wildhorse and compare the firm's ratios with the industry ratios. (Round current ratio, quick ratio, debt ratio, long term debt ratio answers to 2 decimal places, e.g. 12.25 and other answers to 1 decimal place, e.g.12.5 or 12.5%o.) Ratio Current ratio Quick ratio Gross margin Net profit margin Industry Average Wildhorse ratios 2.05 0.78 23.9 % 12.3 % 0.23 0.98 5.62 times times Debt ratio times Long-term debt to equity Interest coverage ROA times times 5.3 % ROE 18.8 % Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Current ratio = current asset / current liabilities

= 16810/21135

= .80

Quick ratio = (cash + account receivebles + investmetn securities)/current liabilties

= (5130 + 490 + 3440)/21135

= .43

Gross margin = gross profit / sales

= 36720/63750

= 57.6%

Net profit margin = Net earning/ sales

= 12662/63750

= 19.9%

Debt ratio = total liabilites/ total asset

= 36340/63817

= .57

Long Term Debt to Equity = long term debt/total equity

= 10115/27477

= .37

Interest Coverage = EBIT/Interest payment

= 18860/540

= 34.93

ROA = net income/total asset

= 12662/63817

= 19.8%

ROE = net income/ total equity

= 12662/27477

= 46.1%

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