Calculating Ratios for Swift Mills Materials
Not what you're looking for?
1. Calculate the following ratios for each year listed. Show them in table form by ratio and by year. Where income is part of the equation, use income after taxes unless otherwise required. Where ratios normally may use average values, use the year-end values instead.
- Current Ratio
- Quick Ratio
- Average Collection Period (net receivables)
- Inventory Turnover (use all inventory accounts)
- Days Sales in Inventory
- Debt Ratio
- Times-Interest Earned Ratio
- Rate of Return on Equity
- Rate of Return on Total Assets
- Operating Profit Margin
- Asset Turnover Ratio
2. Calculate the percentage change in the ratios from 2003 to 2004, and from 2004 to 2005. You can incorporate this into the table for part 1.
3. Now that you've calculated these ratios, briefly highlight the areas of strength and weakness that you can see from looking at the trends and changes. Where is the company going and what issues are facing it if trends continue?
Purchase this Solution
Solution Summary
The solution calculates different ratios for each year for Swift Mills Materials. The income after tax required is determined.
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Motivation
This tests some key elements of major motivation theories.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.