Perform a Du Pont analysis on BestCare. Assume that the industry

a. Perform a Du Pont analysis on BestCare. Assume that the industry
average ratios are as follows:
Total margin                      3.8%

ORDER NOW FOR CUSTOMIZED SOLUTION PAPERS

Total asset turnover           2.1
Equity multiplier                 3.2
Return on equity (ROE)   25.5%
b. Calculate and interpret the following ratios for BestCare:
Industry Average
Return on assets (ROA)          8.0%
Current ratio                              1.3
Days cash on hand                 41days
Average collection period        7days
Debt ratio                                       69%
Debt-to-equity ratio                      2.2
Times interest earned (TIE) ratio 2.8
Fixed asset turnover ratio            5.2

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply