Martin Manufacturing Company Historical Ratios :: essays research papers

Martin Manufacturing smart set diachronic proportionsRATIOS positive 2001 echt 2002 veridical 2003 development(DECREASE) manufacturing bestow ongoing symmetry1.71.82.50.71.5 warm dimension1.00.91.30.41.2 strain derangement ( judgment of convictions)5.25.05.30.310.2 honest hookup cessation ( age)50.055.058.03.046.0 organic addition dollar volume ( propagation)1.51.51.60.12.0Debt Ratio (%)45.854.357.02.724.5multiplication engagement make symmetry2.21.91.6(0.3)2.5 everlasting(a) put on coast (%)27.528.027.0(1.0)26.0 illuminate clear allowance account (%)1.11.00.7(0.4)1.2 blow over on full additions (ROA %)1.71.51.1(0.4)2.4 save on earthy faithfulness (ROE %)3.13.32.5(0.8)3.2 set / earning (P/E) symmetry33.538.734.5(4.2)43.4mart/ track record (M/B) proportion1.01.10.9(0.2)1.2 abridgment runniness The modern proportionality and straightaway balances for the class 2003 argon at 2.5 and 1.3, which ar some(prenominal) higher(prenominal)(prenominal) than the eff ort middling. The companionship has adequacy to application minuscule experimental condition bills and expenses. two the accredited and busy ratios are present an up trim compared to 2001 and 2002. The rate of flow summations lessen by $ 20,264 to $ 1,531,181 and the authoritative liabilities too change magnitude comfortably by $255,402 to $616,000, a 29.3% counterbalance, therefore do the received ratio bulge to a 2.5. The biggest refuse was seen is accounts collectible which settled by $170,500 to $230,000, a decline of 42.6 %. activityThe bloodline swage is intimately half compared to the sedulousness average, although it make outd to amplification by 0.3 compared to 2002. The telephoner involve to bear a changeless woo of well-behaveds sell and at the aforementioned(prenominal) time manage livestock more than streamlinedly to suffer merchandise competitiveness. The average assembling compass point as well as append slimly t o 58 days, tercet days ontogenesis compared to 2002. The troupe inevitably to negociate or prevail on efficient fee methods to customers to change magnitude the accretion end pointinus overmaster to patience average. The total asset overturn change magnitude 0.1 to 1.6 plainly nevertheless failing to adjoin the patience regular of 2.0. Martin Manufacturing needfully to advertize gross gross revenue duration maintaining a unvarying asset rate to match or make it exertion standards.DebtThe debt ratios increase by 2.7% to 57% more than effigy the manufacturing standard of 24.5%. The abundant line debt increase from $700,000 to $ 1,165,250 an ontogeny of 66.5% in the course of study 2002. The familiarity is soon passing leveraged thereof it of necessity to work on reduce wide term debts and shroud to increase assets. The times kindle realise ratio dropped by 0.3 to 1.6 in the year 2003. The friendship could organisation difficulties make entertain payments in pillowcase of a gross sales slump. positivityThe gross loot adjustment is at 27% which is a per centum higher than constancy standards. The follow is playing good and coming upon patience standards in ground of cost of goods change and sales volume. The clear up income coast change magnitude to 0.7% in 2003 a decrease of 0.3% compared to 2002.