Question

Instructions:
Answer the last three questions using the information below.
Alphabet Inc, (GOOG)
Ratios	Industry Average Ratio	Three Year Company Ratio Results
		2015	2016	2017
	Year(s)	Year	Year	Year
Debt/Equity	0.03	0.225461436	0.204702379	0.293720738
Current	5.12	4.666701191	6.290761518	5.140305173
Quick Ratio	4.92	3.783842569	5.152363333	4.212504652
Return on Assets	0.1155	0.118186287	0.123686333	0.069420382
Return on Equity	0.1428	0.145839931	0.15019644	0.069420382
Net Profit Margin	0.1419	0.218005307	0.215770117	0.11422128
Instructions:
Discuss the following questions throughly (2-3 sentences).
What does each ratio reveal about the company?
Have the ratios improved or worsened over time? Explain why you think this happened.
Compare the company ratio results with the industry average ratios. What do the numbers reveal?

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
atios	Industry Average Ratio	Three Year Company Ratio Results
		2015	2016	2017	Question 1	Question 2	Question 3
	Year(s)	Year	Year	Year
Debt/Equity	0.03	0.22546144	0.20470238	0.29372074	indicates the proportion of the company's assets that are being financed through debt.	In 2017, it has worsened as more of the assets are being finance through debt	comparative to industry, its very high
Current	5.12	4.66670119	6.29076152	5.14030517	is the measure of liquidity. It indicates whether the business can pay debts due within one year out of the current assets	It has worsened compared to year 2016 since lower Current ratio means company will not be able to pay short term obligation from current assets	it is better for 2017 comparing industry
Quick Ratio	4.92	3.78384257	5.15236333	4.21250465	indicates that the business can meet its current financial obligations with the available quick funds on hand.	improved vs 2015. However wrosened vs 2016. as higher the ratio, better for company	Indsutrsty average is better then 2017
Return on Assets	0.1155	0.11818629	0.12368633	0.06942038	this ratio measures how profitable a company's assets are	Worsened as return is reducing every year on assets	Indsutrsty average is better in 2017
Return on Equity	0.1428	0.14583993	0.15019644	0.06942038	shows how much profit each dollar of common stockholders' equity generates.	Worsened as return is reducing every year on assets	Indsutrsty average is better in 2017
Net Profit Margin	0.1419	0.21800531	0.21577012	0.11422128	indicates how much net income a company makes with total sales achieved.	Worsened as return is reducing every year on assets	Indsutrsty average is better in 2017