Dunham Cosmetics - Financial Evaluation

1.Calculate Dunhams 1995 financial rations. (See Exhibits 1,2, and 3). Current Ratio = (current assets/current liabilities) = (16,268/7,600) = 2.1405% Inventory disturbance = (gross revenue/inventory) = (26,671/6,133) = 4.3487% receivable____ = 5,920___ = 81.01 Days DSO = annual sales/365 26,671/365 Fixed addition Turnover = (sales/net fixed assets) = (26,671/3,336) = 7.9949% Total Turnover addition = (sales/total assets) = (26,671/16,268) = 1.6394% Total Debt to Total Assets = (total debt/total assets) = (9,666/16,268) = 0.5941% Time invade Earned = (earnings sooner interest taxes/interest charge)                            = (1,331/578)                            = 2.3027% EBITDA Coverage = (EBITDA + drive Payment)/( Interest + mavin payment + Lease                                    Â Payment) Profit permissiveness on sales = (net income on hand(predicate) to crude stock)/(sales)                           = (376/         26,671)                           = 0.01409% Basic Earning top executive = (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 trend abbreviation indicate Dunhams localise has been deteriorating?          (See Exhibit 3) A trend abbreviation indicates that Dunhams position has been deteriorating. 3.Is the coin bank justifiably carry oned? Justify your answer. The bank is justifiably concerned because the debt ratio increases and creditors prefer low debt rate collectible to the reason that the greater 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 responsibility to express concern in 1994, peculiarly since the current ratio was close to 1.85, the number that could spark off a call of the loan? Explain. GC B had the responsibility to express concern in 1994, If you want to get a full essay, pronounce it on our website: OrderCustomPaper.com

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