Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the purpose of this homework is to practice using

The purpose of this homework is to practice using Excel to calculate financial ratios. The...

50.1K

Verified Solution

Question

Accounting

The purpose of this homework is to practice using Excel to calculate financial ratios. The attached Excel file contains data from the SEC website for Harley-Davidson (HOG) for the 2017-2016 period. Three of the ratios have already been calculated to start the process. Please format all ratios to display two digits after the decimal point. When appropriate, format the ratio as a percentage, such as in 'profit margin'. Note that the data for the Income statement and Balance Sheet, necessary for calculating the ratios, are in separate worksheets. Just point to the appropriate 'cells' in these worksheets to build the formula in the 'Ratio Analysis' worksheet. What is the Internal Growth Rate & Sustainable Growth Rate?

Ratio Analysis for Harley Davidson (HOG)
Ratio 2017 2016
Current Ratio 1.23 1.35
Debt-to-equity 2.69 2.66
Cash Coverage 0.22 0.27
Inventory Turnover 9.46 10.58
Days' sales in inventory 38 34
Receivables Turnover 15.43 18.55
Days' sales in receivables 23 19
Total asset turnover 0.58 0.61
Profit Margin 9.24% 11.54%
Return on Asset 5.23% 7.00%
Return on Equity
Retention Ratio 0.52 0.64
Internal Growth Rate
Sustainable Growth Rate

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students