1. Denver Manufacturing Company Sales Ratio Comparisons By: David O’Donnell Section 3 Row 2

2. Ratio Comparison Chart This Ratio Chart shows clearly the profitability of the 3 Divisions that make up the Denver Manufacturing Company

3. Division A

4. Analysis of Division A As we can see, Division A is not quite as profitable as either Division B or C.Division A Division B C What Division A does have is it’s able to pay debts based on the near future which resembles on the Current Ratio and the Quick Ratio.Division A The turnover rate for each division is very similar. For the accounts receivable, almost all three are similar as well.

5. Division B

6. Analysis of Division BDivision B Division B is much more profitable than Division A, and almost exact to Division C.Division B Division ADivision C The Debt to Asset Ratio shows how Division B rarely has no debt. When compared to Division A, the Low Debt to Asset Ratio is much better.Division B Division A The Profitability Ratios, Return on Sales, Return on Assets and Return on Equity is much better than Division A and equal to Division C.Division A Division C

8. Analysis of Division CDivision C Division C has little to no debt, but has the ability to pay near future debts based on the Quick Ratio and the Current Ratio.Division C The Profitability Ratios, Return on Sales, Return on Assets and Return on Equity is much better than Division A and equal to Division C.Division A Division C The turnover rate for each division is very similar. For the accounts receivable, almost all three are similar as well.

9. Consolidated

10. Company Analysis For Denver Manufacturing The Current Ratio and the Quick Ratio for the Denver Manufacture allow the company to pay debts in the near future. This would be the strength of the Denver Manufacturer company. The ratios pertaining to the graph, Return On Sales, Return On Assets and Return On Equity, could use improvement. Division B and C perform much better than Division A in this area.Division B CDivision A The ratios for days in Accounts Receivable, and days in inventory, are similar for all divisions. Data from other companies in the same industry are needed in order to compare the Denver Manufacturer’s numbers.