Explore BrainMass
Share

Explore BrainMass

    Financial ratios and a comparison of the ratios

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

    Write a memo to your superior analyzing the performance of SAC for 2005 and 2006. This analysis should be based on the information found in the consolidated financial statements.

    Your memo should include the following financial ratios and a comparison of the ratios over the two-year period:

    current ratio
    debt-to-equity ratio
    inventory turnover (use ending inventory)
    accounts receivable turnover (use ending accounts receivable balance)
    gross margin percentage

    Show your calculations for each ratio and comment on SAC's performance for each ratio. Discuss other tools/methods that could be utilized to analyze the financial performance of a company.

    © BrainMass Inc. brainmass.com October 9, 2019, 10:35 pm ad1c9bdddf
    https://brainmass.com/business/financial-accounting-bookkeeping/financial-ratios-and-a-comparison-of-the-ratios-225033

    Attachments

    Solution Preview

    Write a memo to your superior analyzing the performance of SAC for 2005 and 2006. This analysis should be based on the information found in the consolidated financial statements.

    Your memo should include the following financial ratios and a comparison of the ratios over the two-year period:

    current ratio
    debt-to-equity ratio
    inventory turnover (use ending inventory)
    accounts receivable turnover (use ending accounts receivable balance)
    gross margin percentage

    Show your calculations for each ratio and comment on SAC's performance for each ratio. Discuss other tools/methods that could be utilized to analyze the financial performance of a company.
    Follow tables shows the ratio ( For calculations see the attached excel ...

    Solution Summary

    Response gives guidelines to calculate the financial ratios and to make a comparison of the ratios over the two-year period

    $2.19