You will calculate ratios and analyze the data collected in
You will compare ratios from the SMH data to ratios calculated from the comparative facilities.
Measure the liquidity, debt, and operating ratios of the FP and NFP organizations, particularly the following:
A. Liquidity
• Current ratio
• Acid test ratio
B. Operating performance
• Return on assets
• Operating profit total and percentage
• Investment yield
• Return on equity
C. Management efficiency
• Days in accounts receivable (AR)
• Days inventory on hand
• Days cash on hand
Create tables to compare the data from SMH to the data from the other facilities. You will use two years of data for comparison. Present data for each of the above categories on one sheet.