Hey please help me with the following answers. Also please keep the language simple because I do not fully understand accounting terms yet. Thank you. (see
below)
Ratio
Year 1
Year 2
Current ratio
3.12:1
2.96:1
Quick ratio
1.34:1
1.02:1
Receivables turnover
9.7 times
10.2 times
Inventory turnover
2.4 times
2.3 times
Profit margin
11.4%
12.6%
Asset turnover
1.21 times
1.22 times
Return on assets
13.7%
15.4%
Return on equity
28.5%
29.3%
Price-earnings ratio
10.4 times
12.4 times
Debt ratio
50.2%
45.3%
Times interest earned
9.6 times
13.0 times