Numerical Problem Speech or Presentation Example | Topics and Well Written Essays - 250 words

Numerical Problem - Speech or Presentation ExampleFurther, the firm has a higher(prenominal) debt-to-equity ratio which is also unfavorable indicating more risk because the firm depends more on orthogonal lenders.Average collection period indicates the number of long time a firm requires converting its receivables into hard cash. The firm takes more days that the application average implying that the premiums receivable of the firm are less liquid or are born-again less quickly into cash. The firm is, therefore, less competent in managing its premium receivables compared to the industry average.Days cash on hand shows the number of days of operating expenses that the firm could meet with its current cash available. The confederation is in a worse situation because it has a lower ratio than the industry average and should summation its fundraising or cut back its spending.Return on assets is a profitability ratio measuring how economical a firm is in using its assets to gener ate revenue. The firm has a higher ratio than the industry average implying that it is more efficient in using its assets to generate revenue than the industry average.The firm has higher TIE ratio than the industry average. It, therefore, has higher ability to meet its interest payments on the debt. The firm has a lower fixed asset turnover ratio meaning it is not using the assets optimally. It is less efficient than the industry average in using assets to generate sales or