Question

1) Company's Current ratio

2017 Current ratio = 2.055

2016 Current ratio = 2.077

Explain what information this ratio provides (define), and what the results mean specifically to your

company. Use complete sentences in your own words.

Has the current ratio improved?_________________________

2) Company's Debt ratio

2017 Debt Ratio =0.417987 = 41.799%

2016 Debit Ratio = 0.415240 = 41.524%

Explain what information this ratio provides (define), and what the results mean specifically to your

company Use complete sentences

Has the ratio improved? __________________

3) company Profit Margin

2017 Profit Margin Ratio = 0.232000663 =23.200%

2016 Profit Margin Ratio = 0.199640614 =19.964%

Explain what information this ratio provides (define), and what the results mean specifically to your

company. Use complete sentences.

Has the ratio improved? __________________

4) Return on assets

2017 Return on assets = 0.116538645 =11.654%

2016 Return on assets = 0.09205004 = 9.205%

Explain what information this ratio provides (define), and what the results mean specifically to your

company. Use complete sentences

Has the ratio improved? __________________

Answer 1

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Current Ratio provides information about company's financial Health in the form of telling us is company capable of paying back its debts with its assets

Higher the ratio, better for company. Hence it has been declined

Debt ratio tells us the proportion of a company's asset that are financed by debt

Lower the ratio, better for company. Hence it has been declined

Profit margin ratios tell us the profitibality of the company relative to Net Sales

Higher the ratio, better for company. Hence it has been improved

Return on asset tells us how profitable the company is related to its total assets

Higher the ratio, better for company. Hence it has been improved