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 adjunct Turnover = (sales/net fixed assets) = (26,671/3,336) = 7.9949% Total Turnover asset = (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 interest group Earned = (earnings sooner interest taxes/interest charge)                            = (1,331/578)                            = 2.3027% EBITDA Coverage = (EBITDA + rent Payment)/( Interest + mavin payment + Lease                                  Â Â Â Payment) Profit valuation account on sales = (net income on hand(predicate) to plebeian stock)/(sales)                           = (376/         26,671)                           = 0.01409% Basic Earning situation = (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 comeliness = (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 epitome indicates that Dunhams position has been deteriorating. 3.Is the swan justifiably business concerned? Justify your answer. The bank is justifiably concerned because the debt ratio increases and creditors prefer low debt judge 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 elicitation a call of the loan? Explain. GCB had the responsibility to express concern in 1994, If you want to get a full essay, set out it on our website: OrderEssay.net

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