Description
Read Financial Ratio Analysis: Milan Fashions Coat Company Case Study.
Analyze the company’s loan request and financial statements in the case study.
Provide the information requested for A, B, C, & D in the case study. (on page 4)
Submit your answers by 11:59 p.m. (Eastern time) on Sunday.
Explanation & Answer
Attached.
Running head: FINANCIAL RATIO ANALYSIS
Financial Ratio Analysis
Student’s Name
Institutional Affiliation
1
FINANCIAL RATIO ANALYSIS
2
A.
Current ratio =
For 2015=
current assets
current liabilities
1,698,851
1,807,600
128,213
83,918
= 13.3 times; for 2016=
Long-term debt-to-Equity ratio =
For 2015=
90000
273,761
2,715,611
Total Debt ratio =
For 2015=
2,850,440
=0.099=10%
total assets
273,761
2.989,372
= 0.092=9.2%; For 2016=
273,761
2715611
315,698
55070
2989372
273,761
2989372
3,131,478
= 0.090=9%
shareholders equity
281,038
2850440
=6%
cost of sales
average inventory
=5.7 times; for 2016=
810635
281,038
total debt
= 8%; For 2016=
325,848
60600
= 5.4 times
revenue
fixed asset
= 0.2 times; for 2016=
Debt-to-Capital ratio =
For 2015=
281,038
total laibilities
Fixed asset turnover =
For 2015=
= 3.1%
total equity
= 0.100 = 10%; For 2016=
Inventory turnover =
For 2015=
88160
total laibilities
Financial leverage ratio =
For 2015=
total equity
2...
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