Principles of Managerial Finance, 15th Edition
by Scott B. Smart, Chad J. Zutter, Lawrence J. Gitman
Long description
The table has eight columns: ratio, formula, year 2015, year 2016, industry average 2016, cross-sectional evaluation in 2016, time series evaluation between 2015 and 2016, and overall evaluation. Row entries are as follows. Liquidity. Row 1: Current ratio; current assets over current liabilities; 1.23; 1.47; 1.32; O K; O K; O K. Row 2: Quick acid-test ratio; current assets minus inventory over current liabilities; 0.83; 1.09; 0.76; O K; O K; O K. Activity. Row 3: Inventory turnover; cost of goods sold over inventory; 19.9; 19.9; 11.1, O K; O K; O K. Row 4: Average collection period; accounts receivable over average sales per day; 5.2 days; 5.6 days; 7.5 days; O K; O K; O K. Row 5: Average payment period; accounts payable over ...
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