Marcia’s is a marketer of fashionable woman’s clothing. You have been hired as a financial analyst to assess Marcia’s financial situation. You begin by assembling financial ratios that may indicate strengths and weaknesses of the business.
Current ratio Quick ratio Days in accounts receivable Inventory turnover Fixed asset turnover Total asset turnover Debt ratio Times interest earned Gross profit margin Operating profit margin Net profit margin Return on total assets Return on equity 2018 2019 2020 1.71X 1.65X 1.53X .92X .89X .84X 60 days 60 days 67 days 4.2X 3.9X 3.69X 3.2X 3.33X 3.57X 1.4X 1.35X 1.31X 59.2% 61% 76.4% 4.2X 3.7X 2.78X 25% 23% 20% 12.5% 12.7% 13.3% 6.1% 6% 5.1% 8.54% 8.1% 6.7% 20.93% 20.74% 28.4% 2020 Industry average 1.7X .95X 65 days 4.5X 4.5X 1.37X 60% 4.75X 22.5% 12.5% 6.5% 8.91% 22.28%