Now, please work on the following tasks. This assignment will be a challenging task for 7 points, ok? Try to show me your effort or even your struggles! Read CWUF case. While the income statement and
CWUF Financial Ratio Analysis Worksheet
Your Name:
| 2019 | 2018 | Basic Rules | |
| Liquidity | |||
| Current Ratio | Should be >1.00 | ||
| Quick Ratio | Good to see close to 1 | ||
| Leverage | |||
| Debt to total asset ratio | Good to see less than 1 | ||
| Debt to Equity ratio | Smaller is better | ||
| Activity | |||
| Inventory turnover | Higher turnover will be better --- Smaller inventory level will increase the turnover! | ||
| Fixed asset turnover | Higher turnover will be better --- Smaller fixed assets level will increase the turnover (Productivity of the fixed assets)! | ||
| Profitability | |||
| Gross profit margin | Higher is better (Lower cost of goods sold or Higher sales will increase the margin) --- Strategic directions (Ex. Focusing on sales quantity or Lean operations) | ||
| Operating profit margin | Higher is better – Operational efficiency will be indicated. Better cost structure might increase this margin. | ||
| Net profit margin | Higher is better. Total profitability (Corporate profitability). Check the interest expense and Discontinued operations. | ||
| Return on total Assets (ROA) | Higher is better. Consider EBIT and portion of total assets. The total sales for each $1 of total assets. |
Your financial analyses and strategic suggestions:
Liquidity of CWUF:
Leverage of CWUF:
Activity of CWUF:
Profitability of CWUF:
