Requirements:
Compute the following ratios for 2016 and 2015
Current ratio
Quick ratio (acid test)
Receivables turnover and days’ sales outstanding (rounded to the nearest whole day)
Inventory turnover and days inventory outstanding (rounded to the nearest whole day)
Accounts payable turnover and days’ payable outstanding (rounded to the nearest whole day).
Cash conversion cycle (in days)
Times-interest-earned ratio
Return on assets (use DuPont analysis)
Return on common shareholders’ equity (use DuPont analysis)
Earnings per share of common stock
Price/earnings ratio.
Decide whether (a) Lannister’s financial position improved or deteriorated during 2016 and (b) the investment attractiveness of Lannister’s common stock appears to have increased or decreased.