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    james
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    The document provides financial information for Jones Electrical Co. from 2004-2006 and 2007. It shows the company's current and quick ratios have declined from 2004 to 2006, indicating weaker liquidity over time. Profitability measures like return on assets and return on equity were highest in 2005. Asset turnover ratios in 2004 show inventory had high turnover while accounts payable had a low turnover, resulting in a cash conversion cycle of around 100 days.

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    jones electrical profitability ratio

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    The document provides financial information for Jones Electrical Co. from 2004-2006 and 2007. It shows the company's current and quick ratios have declined from 2004 to 2006, indicating weaker liquidity over time. Profitability measures like return on assets and return on equity were highest in 2005. Asset turnover ratios in 2004 show inventory had high turnover while accounts payable had a low turnover, resulting in a cash conversion cycle of around 100 days.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    7 views4 pages

    Case 4 Ratios

    Uploaded by

    james
    The document provides financial information for Jones Electrical Co. from 2004-2006 and 2007. It shows the company's current and quick ratios have declined from 2004 to 2006, indicating weaker liquidity over time. Profitability measures like return on assets and return on equity were highest in 2005. Asset turnover ratios in 2004 show inventory had high turnover while accounts payable had a low turnover, resulting in a cash conversion cycle of around 100 days.

    Copyright:

    © All Rights Reserved
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    of 4

    Liquidity of Jones Electrical Co.

    2004 2005 2006


    Current Ratio: 2.14 1.91 1.64

    Quick Ratio: 1.05 0.97 0.71

    2004 2007
    A/R 187 290 103 use
    Inv 243 433 190
    PPE 187 252 65
    A/P 36 203 167
    LoC 149 250 101
    LTD 182 128 54
    Net Worth 184 248 64
    Profitability of Jones Electrical Co. Asset Turnover for Jones Electrical Co.

    2004 2005 2006 2004


    ROA: 2.38% 4.36% 4% Inventory Turnover: 5.37

    ROE: 7.61% 13.62% 12.35% Inventory Turnover in Days: 68.02

    Cash Conversion Cycle: 99.97 100.12 95.00 A/P Turnover in Days: 10.08

    Fixed Asset Turnover: 14.37


    2005 2006
    5.52 4.8

    66.1 76.09

    9.99 24.50

    18.6 19
    Credit Line = $350,000 Inventroy = 432 A/R = 290

    50% of Inventory = 216

    75% of A/R = 217.5

    Total = 433.5

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