Beruflich Dokumente
Kultur Dokumente
For every, $1 of current debt, F&N has more than enough to cover its
current liability if they come due in both years.
LIQUIDITY
847,705 800,419
𝐶𝑎𝑠ℎ + 𝑆ℎ𝑜𝑟𝑡−𝑡𝑒𝑟𝑚 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝑠 + 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒 (𝑛𝑒𝑡)
= =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 446,389 451,149
= 1.8990 = 1.7742
In 2015, F&N has $1.90 of liquid assets available to cover each $1 of current
liabilities. In 2016, F&N has $1.77 of liquid assets available to cover each $1
of current liabilities.
LIQUIDITY
= 0.4779 = 0.4115
The current cash debt coverage ratio is the company’s ability to pay its
short-term obligations. Thus, in both the years F&N can only cover 47.79
cents and 41.45 cents respectively.
YEAR 2015 2016
RATIO
ACTIVITY
F&N’s accounts receivable turned over 6.0796 and 6.0551 in 2015 and 2016
respectively. This indicates that the average account receivable was collected in 60.0
days and 60.3 days accordingly.
ACTIVITY
= 0.7227 = 0.5722
For every dollar in assets, F&N generated $0.72 in sales during 2015.
While in 2016, F&N generated $0.57 in sales.
YEAR 2015 2016
RATIO
PROFITABILITY
Indicates how much out of every dollar of sales F&N company actually earns. In 2015, a
profit margin of 34.19% mean the company has a net income of $0.34 for each dollar of
total revenue earned. In 2016, a profit margin of 8.37% mean the company has a net
income of $0.08 for each dollar of total revenue earned.
PROFITABILITY
Every dollar that F&N invested in assets in 2015 generated 25 cents of net
income. On the other hand, in 2016 every dollar used to purchase assets
translated into 5 cents of net income.
YEAR 2015 2016
RATIO
COVERAGE
= 18.67% = 16.44%
= 0.3559 = 0.3060
In 2015, a ratio of 0.36 indicates that for every dollar of total liabilities
there were 36 cents of net cash provided by operating activities. In 2016,
a ratio of 0.31 indicates that for every dollar of total liabilities there were
31 cents of net cash provided by operating activities.