1) Calculate all of the ratios listed in the industry ratios table for East Coast Yachts.
Industry Ratios
Ratio Formula Values Answer Lower quartile Median Upper quartile
Current ratio current assets/Current liabilities 51,123,050/50,584,750 1.01 0.86 1.51 1.97
Quick ratio current assets-Inventory/Current liabilities (51,123,050-20,149,650)/50,584,750 0.61 0.43 0.75 1.01
Total asset turnover sales/total assets 611,582,000/401,558,750 1.52 1.10 1.27 1.46
Inventory turnover cost of goods sold/inventory 431,006,000/20,149,650 21.39 12.18 14.38 16.43
Receivables turnover sales/accounts receivable 611,582,000/18,681,500 32.74 10.25 17.65 22.43
Debt ratio total assets-total equity/total assets (401,558,750-181,714,000)/401,558,750 0.55 0.32 0.56 0.61 …show more content…
That means they are not decent at paying their yearly debt with their assets in the 2017. This could be because of the amount of time takes to deliver at East Coast Yachts.
Quick ratio 0.61 Negative. The liquidity of ECY is also poor. This is directly affected by the poor current ratio and most likely the long lead times to delivery of their products.
Total asset turnover 1.52 Positive. ECY is selling and making more revenue compared to its assets than most companies in the industry. This means that ECY is efficient with its assets when generating revenue and making sales.
Inventory turnover 21.39 Positive. This high inventory turnover is reflected in the number of times a product is sold in the year, so ECY is outperforming their competitors in pushing out inventory.
Receivables turnover 32.74 Positive. Their accounting and collection of debts from customers is industry leading and they are extremely above the competition in this measureable. This is related to the asset turnover ratio and shows their effectiveness as using
Industry Ratios
Ratio Formula Values Answer Lower quartile Median Upper quartile
Current ratio current assets/Current liabilities 51,123,050/50,584,750 1.01 0.86 1.51 1.97
Quick ratio current assets-Inventory/Current liabilities (51,123,050-20,149,650)/50,584,750 0.61 0.43 0.75 1.01
Total asset turnover sales/total assets 611,582,000/401,558,750 1.52 1.10 1.27 1.46
Inventory turnover cost of goods sold/inventory 431,006,000/20,149,650 21.39 12.18 14.38 16.43
Receivables turnover sales/accounts receivable 611,582,000/18,681,500 32.74 10.25 17.65 22.43
Debt ratio total assets-total equity/total assets (401,558,750-181,714,000)/401,558,750 0.55 0.32 0.56 0.61 …show more content…
That means they are not decent at paying their yearly debt with their assets in the 2017. This could be because of the amount of time takes to deliver at East Coast Yachts.
Quick ratio 0.61 Negative. The liquidity of ECY is also poor. This is directly affected by the poor current ratio and most likely the long lead times to delivery of their products.
Total asset turnover 1.52 Positive. ECY is selling and making more revenue compared to its assets than most companies in the industry. This means that ECY is efficient with its assets when generating revenue and making sales.
Inventory turnover 21.39 Positive. This high inventory turnover is reflected in the number of times a product is sold in the year, so ECY is outperforming their competitors in pushing out inventory.
Receivables turnover 32.74 Positive. Their accounting and collection of debts from customers is industry leading and they are extremely above the competition in this measureable. This is related to the asset turnover ratio and shows their effectiveness as using