Home Health Inc. Corporation has come to Jane Rose for a yearly financial check-up. As...

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Accounting

Home Health Inc. Corporation has come to Jane Rose for a yearly financial check-up. As a
first step, Jane has prepared a set of ratios for fiscal years 2005 and 2006. Analyze its overall financial
situation from a time series viewpoint.
Home Health Inc. Financial Ratios
Ratio 20052006
Current ratio 3.253
Quick Ratio 2.52.20
Inventory turn over 12.8010.30
Total asset turnover 1.42
Debt Ratio 0.450.62
Net profit margin 8.3%8.1%
Return on total asset 11.6%16.2%
Return on common equity 21.1%42.6%

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