Zmox Systems

Alpha DivisionBeta DivisionGamma Divsion

Financial Ratios(for Zmox Systems)

• Profitability Ratios• Asset Management Ratios• Long-term Solvency Ratios• Liquidity

These different types of ratios are helpful in determining the strengths and weaknesses of each division of the company, as well as the company as a whole.

Alpha Division• Liquidity Ratios

– Current Ratio: 2.31– Quick Ratio: 0.95

• Long-Term Solvency Ratios– Debt Ratio: 46%– Equity Ratio: 54%– LTD Ratio: 12%– Times Interest: 1.69

• Asset Management Ratios– Asset Turnover: 1.55– Accounts Receivable: 13.29– Day’s Sales in Receivables: 27.47

• Profitability Ratios– Gross Profit Ratio: 64%– Profit Margin: 6%– ROA: 9%– ROE: 17%

Beta Division• Liquidity Ratios

– Current Ratio: 2.36– Quick Ratio: 1.28

• Long-Term Solvency Ratios– Debt Ratio: 32%– Equity Ratio: 68%– LTD Ratio: 5%– Times Interest: 4.4

• Asset Management Ratios– Asset Turnover: 1.37– Accounts Receivable: 4.42– Day’s Sales in Receivables: 82.54

• Profitability Ratios– Gross Profit Ratio: 64%– Profit Margin: 15%– ROA: 21%– ROE: 31%

Gamma Division• Liquidity Ratios

– Current Ratio: 2.01– Quick Ratio: 1.01

• Long-Term Solvency Ratios– Debt Ratio: 45%– Equity Ratio: 55%– LTD Ratio: 10%– Times Interest: 2.18

• Asset Management Ratios– Asset Turnover: 1.73– Accounts Receivable: 8.75 – Day’s Sales in Receivables: 41.71

• Profitability Ratios– Gross Profit Ratio: 64%– Profit Margin: 11%– ROA: 28%– ROE: 19%

3 Important Ratios to Compare

• Return on Sales (Profit Margin)– Company Average: 11%

• Return on Assets– Company Average: 16%

• Return on Equity– Company Average: 27%

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Profit Margin Return onAssets (ROA)

Return onEquity (ROE)

Divisions' Profitability Comparison

Alpha Division

Beta Division

Gamma Division

Strengths and Weaknesses

• Using the Data on Previous Slides:– STRENGTHS

• All share a high Gross Profit ratio

• All share a low Long Term Debt ratio

• Using the Data on Previous Slides:– WEAKNESSES

• Overall Debt Structure is quite high for all 3 divisions

THE END!

Presentation by:

Jacquie Kulbick and Seetal Nadella