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    Reeds Ratios compared with industry standards

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    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

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    https://brainmass.com/business/finance/reeds-ratios-compared-industry-standards-274016

    Solution Summary

    Reed ratios compared with industry standards are examined.

    $2.19

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