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  1. business
  2. accounting
  3. \table[[ratio,2018,2019,2020,\table[[industry],[av

\table[[Ratio,2018,2019,2020,\table[[Industry],[Average],[2020]],Evaluation],[\table[[Cross],[sectional],[2020]],\table[[Time-series],[2018-2020]]],[Current ratio,2.5,2.0,,2.25,,],[Acid-test ratio,1.0,0.9,,1.10,,],[Inventory turnover,4.0x,3.0x,,4.0x,,],[Age of inventory,91 days,122 days,,91 days,,],[Accounts receivable turnover,5.0x,4.5x,,6.0x,,],[Age of receivables,73 days,81 days,,61...

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Accounting

\table[[Ratio,2018,2019,2020,\table[[Industry],[Average],[2020]],Evaluation],[\table[[Cross],[sectional],[2020]],\table[[Time-series],[2018-2020]]],[Current ratio,2.5,2.0,,2.25,,],[Acid-test ratio,1.0,0.9,,1.10,,],[Inventory turnover,4.0x,3.0x,,4.0x,,],[Age of inventory,91 days,122 days,,91 days,,],[Accounts receivable turnover,5.0x,4.5x,,6.0x,,],[Age of receivables,73 days,81 days,,61 days,,],[Total asset turnover,0.9x,0.8x,,1.0x,,],[Gross profit margin,39%,41%,,40%,,],[Net profit margin,17%,15%,,15%,,],[Return on assets,5.3%,5.5%,,7%,,],[Return on equity,15%,20%,,20%,,],[Earnings per share,$98,$95,,$75,,],[Debt ratio,60%,65%,,48%,,],[Times interest earned,5.5x,4.5x,,4.0x,,],[Price/Earnings ratio,2.857,2.895,,2.805,,],[Price to book ratio,0.92,0.91,,0.91,,]]
b. On the above table, evaluate the position of the company using cross-sectional and time series (trend) analysis. Use "Good" for favorable ratios, "Poor" for unfavorable ones, or "Fair" for those ratios which almost meet the industrial average or present only slight improvement in the time-series performance.
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