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20172016Current Ratio (Working Capital )            5.78         5.18Quick Ratio     &nbs20172016Current Ratio (Working Capital )            5.78         5.18Quick Ratio            4.90         4.60A/R Turnover5.915.53Inventory Turnover104.9692.72Gross margin68%66%Return...

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Accounting

20172016
Current Ratio (Working Capital )            5.78         5.18
Quick Ratio            4.90         4.60
A/R Turnover5.915.53
Inventory Turnover104.9692.72
Gross margin68%66%
Return on Sales53%52%
Return on Equity9%6%
Return on Assets1%1%

Compare ratio analysis to trends in financial ratios over timefor illustrating their impact, providing examples to support yourclaims.


Answer & Explanation Solved by verified expert
3.8 Ratings (637 Votes)
A LIQUIDITY 1Current Ratio Working CapitalCurrent assetCurrent liabilities Current RatioCurrent assetsCurrent Liabilities In this case current ratio increased from 518 to 578This indicates that the current asset has increased relative to current liabilities Working capital reduced Increase in current ratio indicates increase in liquidity The company is in a better position to meet its short term liabilities 2 Quick ratioQuick AssetsCurrent Liabilities Quick    See Answer
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In: Accounting20172016Current Ratio (Working Capital )            5.78         5.18Quick Ratio     &nbs20172016Current Ratio (Working Capital )            5.78         5.18Quick Ratio            4.90         4.60A/R Turnover5.915.53Inventory Turnover104.9692.72Gross margin68%66%Return on Sales53%52%Return on Equity9%6%Return on Assets1%1%Compare ratio analysis to trends in financial ratios over timefor illustrating their impact, providing examples to support yourclaims.

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