Ratio Analysis Case Speech or Presentation Example | Topics and Well Written Essays - 750 words

Ratio Analysis Case - Speech or Presentation ExampleInvestors of the keep company regard it as a poor investment because it has poor trustworthy and future performance. They anticipate put down growth in the future.As far as the well-being of the special K stockholders are concerned, the company is satisfactory to provide them some returns in the form of dividends even though it strength be lower than that of other companies in the industry. Stephens Company has a higher gross margin function implying commonsense profit as the company is keeping overhead costs in control.In footing of fluentity, the firm is relatively liquid. Its current ratio is greater than one meaning it is able to meet its near-term obligations with lashings of ease. Its quick ratio is less than one implying that itis unable to meet its short-term using its most liquid assets. The company is less liquid than other companies in the industry because it has lower quick and current ratios.In terms of effic iency, the company is less efficient in managing its liabilities and using its assets to generate income. Its average collection and gross revenue period are more than that of other companies in the industry. The companys efficiency in accumulate its receivable is less than that of the industry. Additionally, the company has higher days inventory on hand.In terms of leverage, the company uses more debt than equity. It has a debt to equity ratio of 2. It is highly leveraged than other companies. Even, though it is highly leveraged, it has more subvent for the interest expense (TIE=3.08 times), but the cover is less than that of other companies in the industry. In general, the company is able to pay both the long-term and short-term debts.The loan should be approved. First the company makes a reasonable profit which is sufficient enough for its daily operations. Secondly, the company has higher cover the for the interest expense implying lower risk as a result of bankruptcy. Finally , the company is able to provide common