XACC 280 Week 7 DQ 2

Review Illustrations 15-17 through 15-24 on pp 710-714 of Financial Accounting. Given the data, would you have invested in Quality Department Store in 2006? Explain why or why not. Summarize your analysis of the financial data to support your reasoning. What recommendations would you make to improve the financial health of this company? Explain why.
Response 1
Profit margin for Quality Department Store for 2004 and 2005 was trending up and was above industry average.
Asset turnover for Quality Department Store for 2004 and 2005 only changed slightly by .01 and was bellow the average industry average. The average industry was getting 2.37 per dollar it invested in assets and Quality was only getting 1.22 in 2005. This means it was not getting as much for every dollar it invested in its assets.
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