Profitability Ratios

– Report:

Word count: 750 Max

Double space

Required:

In a report format that must include

 Introduction

 Body

 Conclusion

 References

 750 words

 At least 2 academic references (10 Points)

(1) Current ratio

(2) Accounts receivable turnover

(3) Average collection period (in days)

(4) Inventory turnover

(5) Days in inventory

(6) Current cash debt coverage

(7) Profit margin

(8) Asset turnover

(9) Return on assets

(10) Return on common stockholders’ equity

(11) Debt to assets ratio

(12) Times interest earned

(13) Cash debt coverage

(14) Free cash flow

(b) Compare and comment on the liquidity, solvency and profitability ratios of the two companies (12 points).

(c) Presentation must be given in class “PowerPoint 10 Slides” 10 minutes at least in total (10 points).