Explore BrainMass

Explore BrainMass

    Reeds Ratios compared with industry standards

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Calculate a few ratios and compare Reed's results with industry averages. What do these ratios indicate?

    Liquidity Ratios Industry
    Current ration 2.7
    Quick ratio 1.6
    Receivables turnover 7.7
    Average collection period 47.4

    Efficiency Ratios
    Total asset turnover 1.9
    Inventory turnover 7.0
    Payable turnover 15.1

    Profitability Ratios
    Gross profit margin 33.0
    Net profit margin 7.8
    Return on common equity 25.9

    © BrainMass Inc. brainmass.com June 3, 2020, 11:20 pm ad1c9bdddf

    Solution Summary

    Reed ratios compared with industry standards are examined.