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Published byClaud Gordon Modified over 8 years ago
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Analysis of Springsteen Manufacturing Co. Ratios of Divisions A, B, C, and the company as a whole
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Graph of Ratios
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Division A Division A Current Ratio-2.5225 Quick Ratio-1.4825 Debt to Asset Ratio-0.4138 Return on Sales-0.0601 (graph) Return on Assets-0.1290 (graph) Return on Equity-0.2201 (graph) Avg. Collection Period-45.6250 Avg. Days of Inventory-63.2667
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Division B Division B Current Ratio- 3.3862 Quick Ratio- 1.9841 Debt to Asset Ratio- 0.2201 Return on Sales- 0.0852 (graph) Return on Assets- 0.1667 (graph) Return on Equity- 0.2138 (graph) Avg. Collection Period- 36.3184 Avg. Days of Inventory- 60.8331
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Division C Division C Current Ratio- 3.3862 Quick Ratio- 1.9841 Debt to Asset Ratio- 0.2201 Return on Sales- 0.0852 Return on Assets- 0.1667 Return on Equity- 0.2138 Avg. Collection Period- 36.3184 Avg. Days of Inventory- 60.8333
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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
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Divisional Weaknesses Division A: Debt to asset ratio, return on sales, avg. collection period Division B: Quick Ratio, Division C: Quick Ratio
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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
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In Conclusion… In order to improve upon profit, we must increase the return on sales and decrease our quick inventory ratio
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