Question 4.31 is the question to answer $51.07 Opening income Dos) Intmest expen

Question

Question 4.31 is the question to answer

$51.07 Opening income Dos) Intmest expense Earnings Con) befoee incomet Net earnings Nederland Comamer Prodacts Company Balance Sheet as o September 34, 204 $ 3417 423 Accrsed and other labilities 7s Accounts recrivalble Delerned income lases Prepaid expenets and other 400 Debt due wiin one year 958 Total cuest iablities$22,14 Net goodwill and other Intangible 23,00 Rained eaning Total wockhoilder' equity5172 Total aswt Calculate all the ration, for whch industry figures are available belon for Nederland and the trmk ratios with the industry atios Iadustry Average Carrent ratiko Quick ratie Gron mar Net prola marg Debt ratio Long term dele te equity nterest covenge 432 Refer to the peeceding Information fee Nederland Consumer Products Company. Compue the firmis ratios for the Sallowing atepories and bricly evaluate the companys performance wing these numbes b. Aueet turnover ratios d. Coverage ratio

Explanation / Answer

37.51012849

The current ratio is the proportion of current assets available to cover current liabilities.
The quick ratio is more conservative than the current ratio because it excludes inventory and other current assets,
ROA shows how well management is employing the company's total assets to make a profit.
Return On Equity shows how profitable a firm is by dividing its net income to its shareholders' equity
The debt ratio is company's total debt divided by total assets
Net profit margin is net profit divided by revenue.

Industry Nederland Current ratio 2.05 0.772790897 Quick ratio 0.78 0.574118391 Gross margin 23.9 51.22065088 Net profit margin 12.3 24.61357335 Debt ratio 0.23 0.69713224 Long term debt to equity 0.98 0.726588726 Interest coverage 5.62 20.60167715 ROA 5.3 11.36140523 ROE 18.8

37.51012849

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