Briefly analyze the ratios, then Construct only a list of strengths and a list weaknesses. Gallery of Dreams Ratios Ratio Industry 2015 2014 2013 Current 2.50x 4.48x 4.06x 3.48x Quick 0.80x 1.47x 1.18x 0.96x Average...

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Question

Accounting

Briefly analyze the ratios, then Construct only alist of strengths and a listweaknesses.
Gallery of Dreams
Ratios
Ratio
Industry
2015
2014
2013
Current
2.50x
4.48x
4.06x
3.48x
Quick
0.80x
1.47x
1.18x
0.96x
Average collection period
11 days
16 days
15 days
9 days
Inventory turnover
2.30x
1.19x
1.24x
1.37x
Days payable outstanding
15 days
11 days
12 days
8 days
Fixed asset turnover
17.50x
9.74x
9.09x
8.85x
Total asset turnover
2.80x
1.50x
1.67x
1.82x
Debt ratio
62.00%
29.47%
34.04%
39.17%
Long term debt to
total capitalization
25.53%
14.09%
18.91%
22.33%
Times interest earned
9.93x
22.02x
19.00x
14.23x
Fixed charge coverage
8.69x
4.59x
4.47x
4.25x
Gross profit margin
31.10%
59.21%
59.39%
58.52%
Operating profit margin
8.06%
22.05%
21.86%
20.52%
Net profit margin
4.32%
11.89%
11.00%
10.97%
Return on investment
9.21%
17.97%
18.28%
18.35%
Return on equity
11.34%
24.14%
27.51%
29.88%

Answer & Explanation Solved by verified expert

3.9 Ratings (560 Votes)

Answer Here we have to explain the given ratios strengths and weakness They are By taking a gander at the Current and Quick Ratios it is seen that liquidity administration of the organization much superior to industry norms It has extemporized its liquidity administration from 2013 to 2015 By and by organization See Answer

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Briefly analyze the ratios, then Construct only a list of strengths and a list weaknesses. Gallery of Dreams Ratios Ratio Industry 2015 2014 2013 Current 2.50x 4.48x 4.06x 3.48x Quick 0.80x 1.47x 1.18x 0.96x Average...

90.2K

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Question

Accounting

Answer & Explanation Solved by verified expert

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Gallery of Dreams Ratios

Ratio	Industry	2015	2014	2013

Current	2.50x	4.48x	4.06x	3.48x
Quick	0.80x	1.47x	1.18x	0.96x
Average collection period	11 days	16 days	15 days	9 days
Inventory turnover	2.30x	1.19x	1.24x	1.37x
Days payable outstanding	15 days	11 days	12 days	8 days
Fixed asset turnover	17.50x	9.74x	9.09x	8.85x
Total asset turnover	2.80x	1.50x	1.67x	1.82x
Debt ratio	62.00%	29.47%	34.04%	39.17%
Long term debt to total capitalization	25.53%	14.09%	18.91%	22.33%
Times interest earned	9.93x	22.02x	19.00x	14.23x
Fixed charge coverage	8.69x	4.59x	4.47x	4.25x
Gross profit margin	31.10%	59.21%	59.39%	58.52%
Operating profit margin	8.06%	22.05%	21.86%	20.52%
Net profit margin	4.32%	11.89%	11.00%	10.97%
Return on investment	9.21%	17.97%	18.28%	18.35%
Return on equity	11.34%	24.14%	27.51%	29.88%