Analysis of Springsteen Manufacturing Co. Ratios of Divisions A, B, C, and the company as a whole
Graph of Ratios
Division A Division A Current Ratio Quick Ratio Debt to Asset Ratio Return on Sales (graph) Return on Assets (graph) Return on Equity (graph) Avg. Collection Period Avg. Days of Inventory
Division B Division B Current Ratio Quick Ratio Debt to Asset Ratio Return on Sales (graph) Return on Assets (graph) Return on Equity (graph) Avg. Collection Period Avg. Days of Inventory
Division C Division C Current Ratio Quick Ratio Debt to Asset Ratio Return on Sales Return on Assets Return on Equity Avg. Collection Period Avg. Days of Inventory
Divisional Strengths Division A: Current Ratio, quick ratio, return on equity Division B: Current ratio, return on sales, return on assets, avg. collection period, debt to asset ratio Division C: Current ratio, return on sales, return on assets, avg. collection period, debt to asset ratio
Divisional Weaknesses Division A: Debt to asset ratio, return on sales, avg. collection period Division B: Quick Ratio, Division C: Quick Ratio
Corporation Strengths: Avg. Collection period, Current ratio, return on equity, return on assets Weaknesses: Return on sales, Avg. days of inventory, Quick ratio View the Corporate ratios
In Conclusion… In order to improve upon profit, we must increase the return on sales and decrease our quick inventory ratio