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Ratios Result should be Average All years 19x7 19x6 19x5 3 month average Average vs 19x7 Trend Remarks

Current Ratio Higher Good 2.40 2.60 2.40 2.50 2.50 108% Flactuate
Quick Ratio Higher Good 1.60 1.55 1.60 1.65 1.60 97% Downward
Receivable Turnover Higher Good 8.10 7.50 7.90 8.30 7.90 93% Downward
Inventory Turnover Higher Good 4.00 4.30 4.20 4.00 4.17 108% Upward
Debt Ratio Lower Good 43.00% 38.00% 41.30% 44.60% 41.30% 88% Downward
Return on Assets Higher Good 17.80% 19.10% 19.40% 19.50% 19.33% 107% Flactuate
Return on Equity Higher Good 15.30% 15.10% 15.60% 15.90% 15.53% 99% Downward
Price Earnings Ratio Lower; higher Buying; selling 14.30 13.50 13.30 13.40 13.40 94% Flactuate Buy
Times Interest Earned Higher Good 8.30 9.70 9.50 9.80 9.67 117% Flactuate
EPS Growth Higher Good 8.40 7.10 6.90 7.00 7.00 85% Upward

Happy :)
Answers: Mix :|
1. No, Looking at the Current ratio, the current year improves and the 2.6 of assets can cover the liabilities. At the quick ratio, Sad ;(
even though quick ratio has gone low is maybe because MBI settles some debts and 3% or 0.05% is might be material and still
cannot pay short term loan.
In Addition, MBI company has a higher inventory turnover where in it replaces immediately due to volume of sales. We can
conclude that MBI can sold immediately the inventory that can lower some cost like storage cost (minimize the size) and avoid
obsolete. BUT, the trend in receivable turnover is an indication the management collection of cash from customer is declining
and it might not meet the due date on time for short term loan.

2. Yes, We will buy a long term bonds. Looking at a company that is profitable by checking at inventory turnover, we will
disregard the fact that the company has downward for receivable conversion to cash and quick ratio since this is a long term
liability.
First, the ROA has improved an indication that the assets on hand are being handled to produced profit which is in relation to
the inventory were being sold faster than previous years. ROE has decrease but this is an immaterial if we assume that the
average will be 100% and thus the change is 99%. Therefore, the immateriality of changed and the business has still good
return to the investors.
3. Yes, We decided to buy common stock at a low cost than previous years. Comparing it at the average all years will be take
as 100% and right now it has 94% of a total cost. Given that in a stock has a fast movement trend, we can wait until it values
more then we can sell at higher price.
Since the company is in profitable condition as per the inventory turnover, I also consider the debt ratio is 38% and that means
with 62% of which are the asset and equity that can still pay dividends, and even interest in debt as in the times interest ratio.
Looking at the EPS growth is was way upward and can indicate that the company is recovering from it its loss.

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