net current receivables together and driving them by current liabilities. DHG has an acid-test ratio of .39 for year 11. This compared to the acid test ratio of .61 for year 10 and the industry quartiles of 1.6‚ .9‚ and .6. This ratio is decreasing and indicates a weakness for DHG. Management again needs to investigate ways to increase assets and reduce liabilities to improve this ratio and the company’s ability to pay its liabilities. Inventory Turnover The inventory turnover ratio is an
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PT. INDAH PULP AND PAPER‚Tbk Kelompok 1 BAB 1 LATAR BELAKANG PERUSAHAAN PT. Indah Kiat Pulp & Paper Tbk merupakan perusahaan multinasional yang memproduksi kertas yang bermarkas di Jakarta‚ Indonesia. Perusahaan ini didirikan pada tahun 1981. Sebuah perusahaan anggota Grup Sinar Mas yang menghasilkan aneka produk kertas terutama kardus. Perusahaan ini masuk kategori : Perusahaan yang diperdagangkan di Bursa Efek Indonesia‚ Perusahaan kertas‚ dan Perusahaan Indonesia. Pt. Indah
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Profitability 2010 2011 2012 Return on assets 30.2% 31.46% 31.48% Return on equity 32.62% 34.02% 34.07% Gross profit margin 57.55% 57.51% 57.93% Net profit margin 16.04% 13.90% 14.35% Efficiency Asset turnover (times) 1.88 2.26 2.19 Inventory turnover (days) 95.62 90.55 95.10 Accounts receivable turnover (days) 50.37 42.66 45.16 Liquidity Current ratio 4.12 4.1 3.91 Quick asset ratio 2.46 2.45 2.21 Capital Structure Gearing ratio 2.37 2.36 2.54 Safety Styles Pty Ltd Application Decision
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year. A. Online Retailer This set of data belongs to the online retailer industry. The most significant categories that helped with our decision was the low inventory for a retail business and the relatively high inventory turnover. The reasoning behind the high inventory turnover was because the goods were allowed to sit in storage until sold because of the online aspect of the business. We were also able to research the balance sheet from a well-known online retailer business in Amazon.com‚ and noticed
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1. out of 120 points (100%) award: 10 out of 10.00 points Just Dew It Corporation reports the following balance sheet information for 2011 and 2012. JUST DEW IT CORPORATION 2011 and 2012 Balance Sheets Assets 2011 Current assets Cash Accounts receivable Inventory Total Liabilities and Owners’ Equity 2011 2012 $ 11‚000 27‚000 75‚000 $ 14‚250 36‚750 96‚250 $ 113‚000 $147‚250 Current liabilities Accounts payable Notes payable 2012 $ 54‚000 14‚800 $ 63‚750 20‚500 $ 68‚800 $ 84‚250 Long-term
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investors would be the type of user interested in this type of ratio. The receivables turnover also is a part of measuring liquidity. It measures how quickly Huffman Trucking can convert certain of their assets to quick cash. It also tells how many times on average Huffman Trucking collects its receivables during a given period. This indicates Huffman Trucking’s debt collection ability. The receivables turnover ratio gives an indication if Huffman Trucking is having difficulty collecting
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44 | | | | = | 1.96 | | | | | | | | | | | | | | | | | Total asset turnover | = | Sales | | | Interest coverage | = | EBIT | | | Total Assets | | | | | Interest | | = | $167‚310‚000 | | | | = | $23‚946‚000 | | | $108‚615‚000 | | | | | $3‚009‚000 | | = | 1.54 | | | | = | 7.96 | | | | | | | | | | | | | | | | | Inventory turnover | = | COGS | | | Profit margin | = | Net Income | | | Inventory | | | | | Sales |
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company’s liquidity is rather satisfactory. b. Asset Management The company’s inventory management is quite satisfactory. The company might face problems with its account receivables as the collection period for the company is higher compared to the industry. Therefore‚ attention has to be given to the management of account receivables. c. Leverage The level of the company’s debts is higher than that of the industry average. However‚ the ability of the company to pay interests is better compared
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Addison Amalgamated Airways’ current ratio and quick ratio‚ based on its most recent balance sheet: Cash $ 700‚000 Accounts Payable $ 1‚200‚000 Marketable Securities 950‚000 Notes Payable 2‚500‚000 Accounts Receivable 1‚250‚000 Long-Term Debt 1‚600‚000 Inventory 3‚400‚000 Common Stock 4‚250‚000 Net Fixed Assets 6‚550‚000 Retained Earnings 3‚300‚000 Total Assets $12‚850‚000 Total Claims $12‚850‚000
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It is calculated by dividing sales in dollars by assets in dollars. Formula: Asset Turnover = Revenue / Assets 2007: Revenue = $1‚886‚081‚000 Assets = $2‚900‚462‚000 Asset Turnover = $1‚886‚081‚000 / $2‚900‚462‚000 = 0.650269 2008: Revenue = $2‚380‚327‚000 Assets = $3‚629‚001‚000 Asset Turnover = $2‚380‚327‚000 / $3‚629‚001‚000 = 0.655918 k) Return on Assets
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