In: Finance
You have been hired as an analyst for Mellon Bank and your team is working on an independent assessment of Daffy Duck Food Inc. (DDF Inc.) DDF Inc. is a firm that specializes in the production of freshly imported farm products from France. Your assistant has provided you with the following data for Flipper Inc and their industry.
Ratio |
1999 |
1998 |
1997 |
1999- Industry Average |
Long-term debt |
0.45 |
0.40 |
0.35 |
0.35 |
Inventory Turnover |
62.65 |
42.42 |
32.25 |
53.25 |
Depreciation/Total Assets |
0.25 |
0.014 |
0.018 |
0.015 |
Days’ sales in receivables |
113 |
98 |
94 |
130.25 |
Debt to Equity |
0.75 |
0.85 |
0.90 |
0.88 |
Profit Margin |
0.082 |
0.07 |
0.06 |
0.075 |
Total Asset Turnover |
0.54 |
0.65 |
0.70 |
0.40 |
Quick Ratio |
1.028 |
1.03 |
1.029 |
1.031 |
Current Ratio |
1.33 |
1.21 |
1.15 |
1.25 |
Times Interest Earned |
0.9 |
4.375 |
4.45 |
4.65 |
Equity Multiplier |
1.75 |
1.85 |
1.90 |
1.88 |