For the past three years, calculate and discuss the importance of the following
ID: 2454975 • Letter: F
Question
For the past three years, calculate and discuss the importance of the following ratios for Almost Family Inc.
Liquidity Ratios—working capital, current ratio, quick/acid-test ratio, receivable turnover, average day's sales uncollected, inventory turnover, average day's inventory on hand, operating cycle
Profitability Ratios—profit margin, asset turnover, return on assets, debt-to-equity ratio, return on equity
Long-term Solvency Ratios—debt-to-equity ratio, debt to total assets, times interest earned, cash debt coverage
Cash Flow Ratios—cash flow yield, cash flows to sales, cash flows to assets, free cash flow
Market Strength Ratios—Earnings per share, price-earnings per share, payout ratio, book value per share
Also, include an overview of the company's operating segments and divisions/subsidiaries, if applicable.
Explanation / Answer
Solution:
The above someof the Ratios are useful to the company Segments.
Because segment is a part or unit of the company therefore very fue atios are aplicable for caluculate the company ratios.
Why we know the company ratios for the purpose of company position / stage in the market.
Useful Ratios for Small, Segments,Parts of the Companies:
1. All Liquidity ratios are useful to the segments.
2. Some Profitability ratios are also Useful.
3. And Cash Flow Ratios are also very Useful for evaluate the position.