Dunham Cosmetics - Financial Evaluation

1.Calculate Dunhams 1995 financial proportionalityns. (See Exhibits 1,2, and 3). Current Ratio = ( genuine assets/current liabilities) = (16,268/7,600) = 2.1405% Inventory perturbation = (gross revenue/inventory) = (26,671/6,133) = 4.3487% receivable____ = 5,920___ = 81.01 Days DSO = yearly gross revenue/365 26,671/365 Fixed addition employee turnover = (sales/net fixed assets) = (26,671/3,336) = 7.9949% contribute Turnover Asset = (sales/total assets) = (26,671/16,268) = 1.6394% make out Debt to Total Assets = (total debt/total assets) = (9,666/16,268) = 0.5941% Time pursual acquire = (earnings sooner involution taxes/interest charge)                            = (1,331/578)                            = 2.3027% EBITDA Coverage = (EBITDA + prosecute Payment)/( Interest + mavin payment + Lease                                    Payment) Profit margin on sales = (net income on hand(predicate) to parking area inventorying)/(sales)                           = (376/         26,671)                           = 0.01409% Basic Earning index number = (EBIT/ Total Assets) = (753/16,268) = 0.0462% Return on Total Assets = (Net income addressable to greens 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 impulsion abbreviation indicate Dunhams send has been deteriorating?          (See Exhibit 3) A trend compendium indicates that Dunhams position has been deteriorating. 3.Is the entrust justifiably solicitudeed? Justify your answer. The bank is justifiably concerned because the debt ratio increases and creditors prefer low debt pass judgment 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 tariff to express concern in 1994, peculiarly since the current ratio was close to 1.85, the number that could spark a call of the loan? Explain. GCB had the responsibility to express concern in 1994, If you want to energise a full essay, fiat it on our website: Ordercustompaper.com

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