Write My Research Paper-Liquidity, Profitability and Solvency Analysis
A) Compute the following liquidity ratios for your selected company:
Current ratio
Accounts receivable turnover
Average collection period
Inventory turnover (if the company does not have inventory, note and skip)
Days in inventory (if the company does not have inventory, note and skip)
B) Compute the following solvency ratios for your selected company:
Times interest earned
Cash debt coverage
Free cash flow
C) Compute the following profitability ratios for your selected company:
Profit margin
Asset turnover
Return on assets
Return on common stockholders’ equity.
D) Interpret your findings for the ratio comparatives analysis your selected company.
E) Evaluate what, if any, options with regard to financial activities your company should consider (i.e., how can the company improve financial performance)? What impact would each of these have on the above ratios?
