The Financial Performance of Seward Inc Assignment - 18

The Financial Performance of Seward Inc - Assignment ExampleThe Liquidity ratio of the bon ton is below the diligence ratio, which means that the play along is less liquid i.e. the company must raise the liquidity in order to gain the trust of the creditors. The liquidity ratio shows the susceptibility of a company to pay off its current liabilities. The company is lacking in the days in receivables and days in inventory compared to the Industry ratios. The company must be reduced in order to generate more efficiency in the processes. The Operating profit margin is less than the Industry margin this explains that the company is doing a good job. However, it is generating a low return on its assets as it could be due to the large value of assets employed as compared to the industry.The company is relying on debt financing and the ratio of debt is high than that of the industry (36%). The company must introduce Equity Financing.The equity is well organized by the managers and the returns generated are higher than the Industry average.