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 overturn = (gross revenue/inventory) = (26,671/6,133) = 4.3487% receivable____ = 5,920___ = 81.01 Days DSO = annual sales/365 26,671/365 Fixed asset Turnover = (sales/net fixed assets) = (26,671/3,336) = 7.9949% Total Turnover plus = (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 divert Earned = (earnings sooner interest taxes/interest charge)                            = (1,331/578)                            = 2.3027% EBITDA Coverage = (EBITDA + direct Payment)/( Interest + mavin payment + Lease                                    Payme nt) Profit b ruleline on sales = (net income on hand(predicate) to universal stock)/(sales)                           = (376/         26,671)                           = 0.01409% Basic Earning male monarch = (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 loveliness = (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 compend indicates that Dunhams position has been deteriorating. 3.Is the savings bank justifiably alludeed? Justify your answer. The bank is justifiably concerned because the debt ratio increases and creditors prefer low debt place 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 knowledgeableness a call of the loan? Explain. GCB had the responsibility to express concern in 1994, If you want to get a full essay, order it on our website: OrderCustomPaper.com

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