Compare all the company ratios with all the industry ratios. What does the ratios indicate Ratios...

Compare all the company ratios with all the industry ratios. What does the ratios indicate

Ratios	Company/industry	2016	2017	2018
Interest coverage ratio	Company	3.77	3.49	2.91
Interest coverage ratio	Industry	17.07	249.55	267.77
Debt/EBITDA	Company	4.58	6.11	5.06
Debt/EBITDA	Industry	3.86	4.45	3.92
Quick Ratio	Company	0.93	1.20	1.17
Quick Ratio	Industry	1.39	1.40	1.43
Total Debt Ratio	Company	1.02	0.97	0.96
Total Debt Ratio	Industry	0.62	0.65	0.66
Long Term Debt Ratio	Company	0.47	0.53	0.51
Long Term Debt Ratio	Industry	0.26	0.27	0.26
Cash Flow from Operations	Company	0.83	0.76	0.68
Cash Flow from Operations	Industry	0.26	0.22	0.25

Expert Solution

Ratios	Comment
Interest Coverage Ratio	Company's interest paying ability is much lesser than the industry average. Industry's other company are in more healthy position than this company.
Debt/EBITDA	Company's debt/ebitda is more than industry average and hence, the company has more debt in comparison to industry. Hence, this company is risky for investors.
Quick Ratio	Quick Ratio is much lesser than industry which means company has lesser cash to pay current liability in comparison with it's peers.
Total Debt Ratio	Total Debt Ratio is more than industry which means company is more debt burden in comparison with it's peers.
Long Term Debt Ratio	Total long term bonds are more than it's peers and chances of default is also more than it's peers.
Cash Flow from operation	Cash flow from operation is more for this company than peers.Hence, company is more safer to invest.

Most of the ratios indicates negative for the company. As an investor its risky to invest in such companies.

jeff jeffy answered 3 months ago

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