Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Liquidity Ratios         Current Ratio 188% 113% 83% 86% Quick Ratio 159% 80% 52% 56% Cash Ratio 136% 59% 39% 46% Profitability Ratios         Gross Margin 21% 17% 19% 19%

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 81E
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View the financial ratios, and write a 100 word minimum analysis in complete sentences interpreting at least one ratio from each category provided. (i.e. select at least one liquidity ratio and one profitability ratio to interpret)

 

Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017
Liquidity Ratios        
Current Ratio 188% 113% 83% 86%
Quick Ratio 159% 80% 52% 56%
Cash Ratio 136% 59% 39% 46%
Profitability Ratios        
Gross Margin 21% 17% 19% 19%
Operating Margin 6% 0% 0% 0%
Pre-Tax Margin 4% 0% 0% 0%
Profit Margin 2% 0% 0% 0%
Pre-Tax ROE 5% 0% 0% 0%
After Tax ROE 3% 0% 0% 0%
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