Financial Analysis and Forecasting for Fatimah Co.
Based on the 2017 financial data for Fatimah Co., answer the following questions:
1. Construct the basic and extended Du Pont equation for the company.
2. Calculate the TIE (times interest earned) and Quick ratio for the company in 2017
Financial Analysis and Equations for Fatimah Co.
1. The basic Du Pont equation for Fatimah Co. is 3.26% and the extended Du Pont equation is 3.3%.
2. The TIE (times interest earned) is 2.86 times, and the Quick ratio is 0.77.
Let's dive into the financial analysis and equations for Fatimah Co. based on the 2017 data. The basic Du Pont equation showcases a profitability ratio of 3.26%, while the extended Du Pont equation reveals a slightly higher ratio of 3.3%. Moving on to the efficiency metrics, the company's TIE (times interest earned) stands at 2.86 times, indicating its ability to cover interest expenses comfortably. Additionally, the Quick ratio of 0.77 highlights the company's liquidity position.