Ratio Analysis Integrated Case Financial Management

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Ratio analysis
Track software,Inc.
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Actualindusty
AverageTS:Time series
Ratio20082009 2009CS:Cross sectional
| | | |
Net working $21000capital| $58000| $96000| TS:ImprovingCS:Poor| Current 1.06 ratio| 1.16| 1.82| TS:ImprovingCS:Poor| Quick 0.63ratio| 0.63| 1.10| TS:ImprovingCS:Poor| Inventory 10.40Turnover| 5.39| 12.45| TS:StableCS:Poor| AverageCollection 29.6days Period| 35.8 days| 20.2 days| TS:DeterioratingCS:Poor| Total Asset 2.66Turnover| 2.80| 3.92| TS:DeterioratingCS:Poor| Debt Ratio 0.78| 0.73| 0.55| TS:DecreasingCS:Poor| Times Interest 3.0earned| 3.1| 5.6| TS:StableCS:Poor| Gross profit 32.1%Margin| 33.5%| 42.3| TS:ImprovingCS:fair| OperatingProfit 5.5%margin| 5.7%| 12.4%| TS:ImprovingCS:Poor| Net profit 3.0%Margin| 3.1%| 4.0%| TS:StableCS:Fair| Return on Total assets 8.0%(OTA)| 8.7%| 15.6%| TS:ImprovingCS:Poor| Return 36.4%On Equity| 31.6%| 34.7%| TS:DeterioratingCS:Poor|

1) Liquidity
Track Software’s liquidity as reflected by the current ratio and quick ratios has improved slightly or remained stable, but overall is significantly below the industry average.

2) Activity
Inventory turnover has deteriorated considerably and is much worse than the industry average. The average collection period has also deteriorated and is also worse than the industry average. Total asset turnover improved slightly but it still well below the industry average. A higher inventory turnover ratio will result low inventory. Hence it more efficiently its assets have been used.The average collection is more than industry average....
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