1. Statement of Company Ratios

2. Current Ratio is good at about 2:1. Quick Ratio is good at about 1:1. Debt to Asset Ratio is better when it’s lower. When Return on Sales (Profit Margin) is less, the goods and services sell quickly and thus there is a quicker return and sales. When Return on Assets is greater than the Return on Equity, then it is a good use of borrowed funds. When the Average Collection Period is around 30 days, then it is a good time to collect money from the accounts receivable. When the Average Days of Inventory is about 14 days, then it is a good cycle of the inventory.

4. Division A Lowest of all the current ratios Lowest of all the quick ratios Low profit margin means that the inventory sells quickly and less expensive goods are sold ROE>ROA, thus a good use of borrowed funds Lowest debt to asset ratio, and the lower the better. This division has less debt than the other divisions ROE>ROA, thus a good use of borrowed funds Second lowest quick ratio ROE>ROA, thus a good use of borrowed funds Good collection of accounts payable, lower than the average ROE>ROA, thus a good use of borrowed funds Collection period is the second best, and low also Division B Division CCorporate

6. Division A Debt to asset ratio is high and thus the company has a lot of debt, almost 50%. Longest of all collection periods, thus there is a delay from the norm in collecting the funds Inventory stays on the shelves and in stock for a very long time Highest of all the current ratios Quick ratio is a little high also Inventory stays on the shelves and in stock for a very long time Second highest of all the current ratios Inventory stays on the shelves and in stock for a very long time Current ratio is a little high Collection period is not too bad, but still a little high Inventory stays on the shelves and in stock for a very long time Division B Division CCorporate

7. Excel Ratio Data Three Selected Ratios Bar Chart