Please explain how the manager is operating the business. Please describe the pr

Question

Please explain how the manager is operating the business. Please describe the projected financial position of this company in comparison to the industry norms. The company is selling automotive parts which would be manufactured using their pre-existing cold forging process.

Thank you!

ManuSteel (Projections based on entering the Automotive market): Financial Ratio Current ratio Acid-test ratio Equity ratio Profit Margin Return-on-assets ratio Return-on-equity ratio 2010 1.72 1.55 0.46 41% 4.8% 10.5% 2011 1.81 1.70 0.46 50% 6.1% 13.3% 2012 1.74 1.68 0.44 53% 5.9% 13.4% Industry Norms 2.58 1.05 0.45 60% 5.6% 12.4% Ratio Calculations:

Explanation / Answer

The projected financial performance of the company is inferior to the industry average in many aspects

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