Case 3. ABC Pvt. Ltd. is a retail company specializing in electronics. They have provided the following data for analysis: • Current Assets: *20,00,000 • Current Liabilities: *10,00,000 • Inventory Turnover Ratio: 6 times • Receivables Turnover Ratio: 8 times • Payables Turnover Ratio: 4 times Questions: 2/4 1. Explain the concept of the working capital cycle. How does it impact a company's cash flow? 2. How does inventory management affect working capital? Discuss techniques that companies can use to optimize their inventory levels. 3. Calculate the working capital cycle for ABC Pvt. Ltd. 4. Interpret the working capital cycle and its implications for the company's liquidity and efficiency. Case 4.

Case 3. ABC Pvt. Ltd. is a retail company specializing in electronics. They have provided the following data for analysis: • Current Assets: 20,00,000 • Current Liabilities: 10,00,000 • Inventory Turnover Ratio: 6 times • Receivables Turnover Ratio: 8 times • Payables Turnover Ratio: 4 times Questions: 2/4 1. Explain the concept of the working capital cycle. How does it impact a company's cash flow? 2. How does inventory management affect working capital? Discuss techniques that companies can use to optimize their inventory levels. 3. Calculate the working capital cycle for ABC Pvt. Ltd. 4. Interpret the working capital cycle and its implications for the company's liquidity and efficiency. Case 4.

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 7DQ: From the Google Finance site, use the DuPont analysis to determine the total assets turnover ratio...

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Current Assets - CurrentLiabilities = Calculated Value 1. Working capital: Ratio Numerator ÷ Denominator = Calculated Value 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of Fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 12. Return on total assets…
Calculate working capital turnover ratio, from the following information: Current Assets Current Liabilities Credit Sales Cash Sales 6,00,000 1,20,000 12,00,000 2,60,000 20,000 Sales Returns
(a) Calculate Return on Investment from the followingGross Profit Rs.100000, Office Expenses Rs. 10000, Selling and Distribution expenses Rs. 25000, Interest on Bank Loan Rs. 8000, Income tax Rs. 12000,Fixed Assets Rs. 300000, Current Assets Rs. 150000 & Current Liabilities Rs.125000(b) Calculate the earning per share from the following data15000 Equity Share of Rs. 10 each 15000010 % Preference Share Capital 100000Net Profit before Tax 55000.
a. Perform a Du Pont analysis on Green Valley. Assume that the industry average ratios are as follows: Total margin 3.5% Total asset turnover 1.5 Equity multiplier 2.5 Return on equity (ROE) 13.1% b. Calculate and interpret the following ratios: Industry Average Return on assets (ROA) Current ratio 5.2% 2.0 Days cash on hand 22 days Average collection period 19 days Debt ratio 71% Debt-to-equity ratio 2.5 Times interest earned (TIE) ratio 2.6 Fixed asset turnover ratio 1.4 c. Assume that there are 10,000 shares of Green Valley's stock outstanding and that some recently sold for $45 per share. • What is the firm's price/earnings ratio? What is its market/book ratio? (Hint: These ratios are discussed in the supplement to this chapter.)
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Silas 4-Wheeler, Inc. has an ROE of 18.72 percent, equity multiplier of 2.00, and a profit margin of 18.00 percent. What is the total asset turnover and the capital intensity? (Round your answers to 2 decimal places.)
From the Google Finance site, use the DuPont analysis to determine the total assets turnover ratio for each of the peer companies. (Hint ROA = Profit margin Total assets turnover.) Once youve calculated each peers total assets turnover ratio, then you can use the DuPont analysis to calculate each peers equity multiplier.
assuming the following ratios are constant, what is the growth rate? Total asset turnover 1.7 Profit margin0.072 Total assets/Equity = 2.15 Payout ratio0.42
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1. Suppose that the equity multiplier is -2,8. Asset turnover is 2. Long-term liabilities are 400 TL. Current ratio 1,5. Non-current assets are 100 TL. What will be the net sales amount? a. 482,76 TL b.637,93 TL c.965,52 TL d.1.120,69 TL