Denver Manufacturing Company Ratio Analysi丹佛制造公司比分析.pptVIP

Denver Manufacturing Company Ratio Analysis Division ADivision A’s ratios for the year ending December 31, 2001, exemplify its importance to the success of our company: A) Current Ratio 2.85 B) Quick Ratio 1.6735294 C) Debt to Asset Ratio 0.3932124 D) Return on Sales (Profit Margin) 0.0663158 E) Return on Assets 0.1474547 F) Return on Equity 0.2200579 G) Average Collection Period 45 H) Average Days of Inventory 60 Division A (continued) Strengths: Division A’s debt to asset ratio shows success in minimizing debt. In addition, they have a reliable return on assets ,13%, for our company. Weaknesses: Division A has a high number for average periods for inventory and collection. However, this is not surprising because our company accommodates the needs of our customers and makes sure to stock warehouses. Division BDivision B’s ratios for the year ending December 31, 2001, exemplify its importance to the success of our company: A) Current Ratio B) Quick Ratio C) Debt to Asset Ratio D) Return on Sales (Profit Margin) E) Return on Assets F) Return on Equity G) Average Collection Period H) Average Days of Inventory 3.5449683 2.1428571 0.2254779 0.0946366 0.1826428 0.223478 39.207921 59.999774 Division B (continued) Strengths: Division B’s average collection period is less than that of Division A, bringing with it a greater confidence that the branch will collect what is owed to them. It’s current ratio is well over 1, indicating that they are conservative in assuming debt. Weaknesses: Because Division B has very little liabilities, it may not be operating at full potential. Division C Division C’s ratios for the year ending December 31, 2001, shows its importance to the success of our company. A) Current Ratio 7.3 B) Quick Ratio 5 C) Debt to Asset Ratio .17 D) Return on Sales .14 E) Return on Assets .28 F) Return on Equity .31 G) Avg Collection Period 72 H) Avg Days of Inventory 68 Division C (continued) Strengths: