Scribd Logo
Upload

Welcome to Scribd!

  • Mixon

    Uploaded by

    Sarah Aisha
    10 views3 pages
    The document contains financial ratio analyses for Mixon's company from 2004-2006, including current and acid-test ratios that remained close to 1, common-size percentages showing inventory as the largest asset, and comparative analyses showing declining accounts receivable and inventory turnover but increasing total debt ratio and return on assets over time.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document contains financial ratio analyses for Mixon's company from 2004-2006, including current and acid-test ratios that remained close to 1, common-size percentages showing inventory as the largest asset, and comparative analyses showing declining accounts receivable and inventory turnover but increasing total debt ratio and return on assets over time.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views3 pages

    Mixon

    Uploaded by

    Sarah Aisha
    The document contains financial ratio analyses for Mixon's company from 2004-2006, including current and acid-test ratios that remained close to 1, common-size percentages showing inventory as the largest asset, and comparative analyses showing declining accounts receivable and inventory turnover but increasing total debt ratio and return on assets over time.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Mixon’s company

    1. Ratios
    a) Current ratio

    2006 2005 2004

    $ 240500 $ 190000 $ 143000


    $ 226400 $ 177750 $ 131750

    = 1.06 times = 1.07 times = 1.08 times

    b) Acid- test ratio

    2006 2005 2004

    $ 119300 $ 98125 $ 86000


    $ 226400 $ 177750 $ 131750

    = 0.53 times = 0.55 times = 0.65 times


    2. Common – size (in %)

    2006 2005 2004

    Cash 6.0 8.0 10.0


    Accounts receivable 17.0 14.0 13.0
    inventory 21.5 18.5 14.0
    Prepaid expenses 2.0 2.0 1.0
    Plant assets,net 53.5 57.5 61.0
    Total assets 100 100 100
    Total liabilities & 100 100 100
    equity

    3. Comparative

    2006 2005
    Collection period 47.37 days 42.45 days

    Accounts receivable
    turnover
    Inventory turnover 3.68 times 4.17 times

    Days sales in inventory 97.84 days 86.21 days

    2006 2005
    Total debt ratio 77.6% 66.5%

    Time interest earned 4.84 times 4.18 times


    Net profit margin 5.07% 5.9%

    Total asset turnover 1.29 times 1.19 times


    Return on assets 6.58% 7.0%

    4. Evaluation

    You might also like