Writing Homework Help

BUSI 320 Computing Rations, Determining if Better or Worse Project

Compute each of the following ratios for 2019 and 2020 and
indicate whether each ratio was getting “better” or “worse” from 2019 to 2020
and whether the 2020 ratio was “good” or “bad” compared to the Industry Avg
*(round all numbers to 2 digits past the decimal place)*
	2019	2020	Getting Better or Getting Worse?	2020 Industry Avg	“Good” or “Bad” compared to Industry Avg
Profit Margin				0.08
Current Ratio				1.80
Quick Ratio				1.12
Return on Assets				0.18
Debt to Assets				0.60
Receivables turnover				12.00
Avg. collection period*				22.10
Inventory Turnover**				8.25
Return on Equity				0.16
Times Interest Earned				8.15

*Assume a 360 day year
**Inventory Turnover can be computed 2 different ways. Use the formula listed in the text
(the one the text indicates many credit reporting agencies generally use)