RATIO ANALYSIS The Corrigan Corporation's 2017 and 2018 financialstatements follow, along with some industry average ratios.a. Assess Corrigan's liquidity position, and determine how itcompares with peers and how the liquidity position has changedover time.b. Assess Corrigan's asset management position, and determinehow it compares with peers and how its asset managementefficiency has changed over time.c. Assess Corrigan's debt management position, and determinehow it compares with peers and how its debt management haschanged over time.d. Assess Corrigan's profitability ratios, and determine how theycompare with peers and how its profitability position has changedover time.e. Assess Corrigan's market value ration, and determine how itsvaluation compares with peers and how it has changed over time.Assume the firm's debt is priced at par, so the market value of itsdebt equals its book value.
f. Calculate Corrigan's ROE as well as the industry average ROE,using this DuPont equation. From this analysis, how doesCorrigan's financial position compare with the industry averagenumbers?g. What do you think would happens to its ratios if the companymil ailed cost-culling measures that allowed it to hold lower levelsof inventory and substantially decreased the cost of goods sold? Nocalculations die necessary. Think about which ratios would beaffected by changes in these two accounts.Corrigan Corporation: Balance Sheets as of December 31
corigan corporation: income statement for years ending December 31
Per share data
Industry Financial Ratio
*Industry average ratios have been constant for the past 4 years.
*Based on year-end balance sheet figures.
*Calculation is based on a 365 day year.
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