Explore BrainMass
Share

Ratio Analysis

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

See the attachment.

20X1 20X2 20X3
current ratio 1.2 1.15 1.1
A/R turnover 15 16 17
Asset turnover 2 2.1 2.2
Profit margin 7% 7.50% 8%
EPS $2.20 $2.30 $2.40
PE 11 12 13
Equity multiplier 2 2.1 2.2

Questions
1. Comment on the firm's changing liquidity across the three-year period.
2. What is the firm's share price at the end of 20X3?
3. What is the firm's ROA for 20X2?
4. What is the firm's ROE for 20X3?
5. Comment on the firm's changing profitability across the three-year period.

© BrainMass Inc. brainmass.com October 24, 2018, 10:37 pm ad1c9bdddf
https://brainmass.com/business/return-on-assets/165420

Attachments

Solution Preview

Please see the attached file

20X1 20X2 20X3
current ratio 1.2 1.15 1.1
A/R turnover 15 16 17
Asset turnover 2 2.1 2.2
Profit margin 7% 7.50% 8%
EPS $2.20 $2.30 $2.40
PE 11 12 13
Equity multiplier 2 2.1 2.2

Questions
1. Comment on the firm's changing liquidity across the three-year period.
2. What is the firm's share price at the end of 20X3?
3. What is the firm's ROA for 20X2?
4. What is the firm's ROE for ...

Solution Summary

The solution explains the changes in liquidity and profitability of the firm.

$2.19
See Also This Related BrainMass Solution

Financial Management: Limitations of Ratio Analysis

Complete a critical analysis of the limitation of ratio analysis for evaluating a company's financial health and future prospects.

Also, discuss ways to avert the limitation of ratio analysis.

View Full Posting Details