Zmox Systems Alpha Division Beta Division Gamma Divsion

Financial Ratios (for Zmox Systems) Profitability Ratios Asset Management Ratios Long-term Solvency Ratios Liquidity These different types of ratios are helpful in determining the strengths and weaknesses of each division of the company, as well as the company as a whole.

Alpha Division Liquidity Ratios –Current Ratio: 2.31 –Quick Ratio: 0.95 Long-Term Solvency Ratios –Debt Ratio: 46% –Equity Ratio: 54% –LTD Ratio: 12% –Times Interest: 1.69 Asset Management Ratios –Asset Turnover: 1.55 –Accounts Receivable: –Day’s Sales in Receivables: Profitability Ratios –Gross Profit Ratio: 64% –Profit Margin: 6% –ROA: 9% –ROE: 17%

Beta Division Liquidity Ratios –Current Ratio: 2.36 –Quick Ratio: 1.28 Long-Term Solvency Ratios –Debt Ratio: 32% –Equity Ratio: 68% –LTD Ratio: 5% –Times Interest: 4.4 Asset Management Ratios –Asset Turnover: 1.37 –Accounts Receivable: 4.42 –Day’s Sales in Receivables: Profitability Ratios –Gross Profit Ratio: 64% –Profit Margin: 15% –ROA: 21% –ROE: 31%

Gamma Division Liquidity Ratios –Current Ratio: 2.01 –Quick Ratio: 1.01 Long-Term Solvency Ratios –Debt Ratio: 45% –Equity Ratio: 55% –LTD Ratio: 10% –Times Interest: 2.18 Asset Management Ratios –Asset Turnover: 1.73 –Accounts Receivable: 8.75 –Day’s Sales in Receivables: Profitability Ratios –Gross Profit Ratio: 64% –Profit Margin: 11% –ROA: 28% –ROE: 19%

3 Important Ratios to Compare Return on Sales (Profit Margin) –Company Average: 11% Return on Assets –Company Average: 16% Return on Equity –Company Average: 27%

Strengths and Weaknesses Using the Data on Previous Slides: –STRENGTHS All share a high Gross Profit ratio All share a low Long Term Debt ratio Using the Data on Previous Slides: –WEAKNESSES Overall Debt Structure is quite high for all 3 divisions

THE END! Presentation by: Jacquie Kulbick and Seetal Nadella