I need help to complete the attached report (Ratio Analysis report): The professor's feedback was that in the comparison area needs to be more in deep the comparison. below is the professor's coments

Ratio Analysis Report

The analysis here focuses on Peyton Approved's financial data from 2015 to 2017 and compares them to industry standards. The ratios used for a comprehensive evaluation include return on equity, quick ratio, return on sales, and gross margin to offer an overview of the company's operating and financial performance. Peyton Approved's higher-than-industry-standard return on equity is a positive sign for stakeholders. In addition, the net margin and return on sales for the business align with industry norms, further demonstrating its financial strength (Wahlen et al., 2017). Strong returns on equity and good profit margins indicate a robust financial performance by the company. In 2017, Peyton Approved had a net income of $83,642.39 and reported $176,236.14 in total assets, while total liabilities amounted to $82,593.75, resulting in total equity of $93,642.39. By dividing the company's current liabilities by its liquid assets, one can calculate the quick ratio, which is $95,114.72 by $51,593.75, yielding a result of 1.84, indicating that the company can pay its debts almost twice. The liquid assets comprise current assets, excluding inventory, prepaid rent, and insurance, which cannot be easily converted into cash. The gross margin ratio, calculated as ($370,875 - $153,160) / $370,875 = 0.59, shows that for every dollar of sales revenue, Peyton Approved earned 59 cents of gross profit. The profitability ratios of Peyton Approved were evaluated using the quick ratios; these ratios indicate the company's liquidity, profitability, efficiency, and return on investment. Peyton Approved had a quick ratio of 1.84, indicating the company's ability to pay its liabilities almost two times. The company's gross profit margin of 0.59 and net margin of 0.23 ($83,642.39 net income/ $370,875 total revenue) demonstrate efficient control of costs and profitability. Peyton Approved's return on sales ratio of 0.23 indicates solid operational efficiency in turning sales into profits. The return on equity ratio of 0.89 which is calculated $83,642.39 net income/ $93,642.39 shareholders’ equity; shows that investors could expect high investment returns. Overall, these ratios suggest that Peyton Approved is financially healthy. Comparison Ratios:

Comparing Peyton Approved's financial ratios to historical ratios and industry norms will allow you to accurately assess the company's financial standing. While the company's return on equity, quick ratio, net margin, and return on sales ratios have been mostly steady throughout the years, the examination shows that the gross margin ratio for 2017 is lower than average for the sector. The random number is the 0.59 gross margin ratio in 2017, which is lower than the 0.70 industry average. Additionally, Peyton Approved may need to enhance its liquidity given the debt rise compared to assets. The analysis indicates that Peyton Approved is a good company but must resolve these anomalous data to advance.

By comparing Peyton Approved's ratios to historical and industry-average ratios, it is evident that the company has performed well in profitability. However, the company could improve its quick ratio by being more receptive to current liabilities and liquid assets. Additionally, Peyton Approved could strengthen its increased profit margins, improve asset turnover, distribute idle cash, cut taxes, or use greater financial leverage to increase return on equity. To achieve these goals, Peyton Approved should consider reducing expenses and debt repayment, selling capital assets not yielding a profit, and negotiating with suppliers to reduce costs. Peyton Approved can strengthen its financial position and grow as a successful business by making these changes. References

Wahlen, J. M., Jones, J. P., & Pagach, D. P. (2017). Intermediate accounting: Reporting and analysis (2nd ed.). Boston, MA: Cengage Learning.