Ratio Analysis

Ratio Analysis
Week 3 Assignment: Ratio Analysis
Given the following information, write a 1-2 page memo (Word, 12 point Arial or Times New Roman font) to your CEO that compares your company to the industry averages. Please be sure to include each of the 6 ratios in your memo.
Company Industry
Return on sales………………………………….12.8 % 10.7%
Return on asset…………………………………..22.1% 19.3%
Current Ratio………………………………………1.5 1.4
Inventory Turnover……………………………..8.6 7.3
Account Receiver turnover…………………..9.1 12.2
Debt Ratio………………………………………………58.7% 53.1%