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(Solved): Comprehensive Ratio Analysis Data for Lozano Chip Company and its industry averages follow. Lozano ...
Comprehensive Ratio Analysis Data for Lozano Chip Company and its industry averages follow. Lozano Chip Company: Balance Sheet as of December 31, 2019 (Thousands of Dollars)
b. Use the extended DuPont equation to calculate ROE for both Lozano and the industry. Do not round intermediate calculations. Round your answers to two decimal places. For the firm, ROE is %. For the industry, ROE is %. c. Outline Lozano's strengths and weaknesses as revealed by your analysis. The firm's days sales outstanding is more than twice as long as the industry average, indicating that the firm should credit or enforce a stringent collection policy. The total assets turnover ratio is well the industry average so sales should be , assets , or both. While the company's profit margin is -Selectthan the industry average, its other profitability ratios are -Selectcompared to the industry - net income should be -Selectgiven the amount of equity and assets.