Explore BrainMass

Martin Manufacturing liquidity, activity, debt, profit

CHAPTER 2 Assessing Martin Manufacturing's CASE Current Financial Position. I need help with question(b).

b. Analyze the firm's current financial position from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firm's liquidity, activity, debt, profitability, and market.


Solution Preview

Please see the attached document.

Martin Manufacturing Company

Actual 2006 Industry Avg
Current Ratio 2.49 1.5
Quick Ratio 1.35 1.2
Inventory Turns 5.29 10.2
Average Collection Period 57.9 days 46
Total asset turnover 1.62 2.0
Debt ratio 57% 24.5
Times earned interest 1.65 2.5
GPM 27% 26
NPM 0.7% 1.2
ROA 1.2% 2.4
ROE ...

Solution Summary

Financial ratios of Martin Manufacturing including cross sectional and time series viewpoints. Liquidity, activity, debt, profitability, and market are examined.