Dunham Cosmetics - Financial Evaluation

1.Calculate Dunhams 1995 financial proportionalityns. (See Exhibits 1,2, and 3). Current Ratio = ( period assets/current liabilities) = (16,268/7,600) = 2.1405% Inventory employee turnover = (gross revenue/inventory) = (26,671/6,133) = 4.3487% receivable____ = 5,920___ = 81.01 Days DSO = annual gross sales/365 26,671/365 Fixed addition turnover rate = (sales/net fixed assets) = (26,671/3,336) = 7.9949% integral Turnover Asset = (sales/total assets) = (26,671/16,268) = 1.6394% summation Debt to Total Assets = (total debt/total assets) = (9,666/16,268) = 0.5941% Time pursuit realize = (earnings sooner engage taxes/interest charge)                            = (1,331/578)                            = 2.3027% EBITDA Coverage = (EBITDA + ingest Payment)/( Interest + mavin payment + Lease                                    Payment) Profit margin on sales = (net income on hand(predicate) to commonalty strain)/(sales)                           = (376/         26,671)                           = 0.01409% Basic Earning motive = (EBIT/ Total Assets) = (753/16,268) = 0.0462% Return on Total Assets = (Net income addressable to common stock/Total Assets)                   = (376/16,268)                            = 0.02311% Return on common beauteousness = (Net income available to common stockholders/Common Equity)                            = (376/6,602)                            = 0.

05695%                            2.Does a thin out abbreviation indicate Dunhams rig has been deteriorating?          (See Exhibit 3) A trend abbreviation indicates that Dunhams position has been deteriorating. 3.Is the cuss justifiably misgivinged? Justify your answer. The bank is justifiably concerned because the debt ratio increases and creditors prefer low debt range collectible to the reason that the great cushion against creditor losses in the showcase of liquidation. 4.Nineteen ninety-four was a down year for Dunham. Do you appreciate that CBG had a state to express concern in 1994, peculiarly since the current ratio was close to 1.85, the number that could explode a call of the bring? Explain. GCB had the responsibility to express concern in 1994, If you want to work a full essay, put it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.