Problem:
For each company listed below, calculate the ratios in the table provided and answer the following questions.
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Ratio
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WD-40 Company
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Xerox
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Sirius XM Radio
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Pepsico
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Current
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Quick
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Operating Margin
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Debt-to-Equity
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Gross Profit Margin
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- Which company has the strongest short-term liquidity as measured by the current ratio?
- Which company is NOT able to pay off all current liabilities at this time?
- Which company has very little money tied up in inventory as measured by the quick ratio?
- Operationally, which company had the best year?
- Which company has the strongest gross margin, but at the same time has the worst Debt-to-Equity ratio?
Additional Information:
This question is basically belongs to the Finance as well as it discusses about calculating short-term liquidity with current ratio, strongest gross margin, debt to equity ratio, etc for a firm.