RATIO ANALYSIS for Airbnb company Complete only the assessment part… RATIO ANALYSIS for Airbnb company Complete only the assessment partPlease add reference Ratio For 2020 RATIO TYPE2020 DATAASSESSMENT AND COMPARISON ANALYSIS1 Debt-Equity Ratio0.63 2 Return onEquity-632.12% 3 Current Ratio 1.74 4 Liquidityratio (QuickRatio)1.73 5 Return oninvestment-304.35% I provide an example for you use it only for example ( Costco company)RATIO TYPE2020 DATAASSESSMENT AND COMPARISON ANALYSIS1 Debt-Equity Ratio0.41? The ratio of 0.41 for Costco is a pretty good ratio for the company.? For this ratio you want a percentage lower than 1 because if it’s greater than one it means the company assets are funded more by debt.? The opposite shows for a lower than 1 ratio, meaning Costco is more funded by equity than debt.? This means that a debt-to-equity ratio of 0.41 means a company relies almost twice as much on equity to drive growth than it does on debt.? Costco has a better debt equity ratio compared to the average for the retail industry. They are 2 Return onEquity21.7? The Return on Equity ratio means the rate at which its investors get return on their investments in the company.? A good Return on equity signifies how well Costco is using its investors’ money to generate profit.? Costco has a good ROE of 21% which is better than the industry average of 16% and its competitors Walmart, which is at 18%. This means investors are more likely to trust Costco with their money than Walmart. 3 InventoryTurnover31 daysInventory turnover ratio shows how much a company has sold and replaced its inventory over a certain time period.A low percentage would mean that they have weak sales and excess inventory. Costco has a good inventory turnover percentage, which means they have strong sales and insufficient inventory.? This ratio strikes a good balance between having enough inventory on hand and not having to reorder too frequently.? Costco also has a better turnover than the benchmark average for the industry and better than competitors Walmart, who sits at 8.81 4 Liquidityratio(QuickRatio)0.53? Currently Costco’s Quick ratio is 0.53. 1 is considered a normal quick ratio and means that they are able to fully pay off its liabilities in the short term.? The higher the quick ratio, the better the company is at getting rid of its current liabilities? Costco has a ratio of less than 1, meaning they might not be able to fully pay off their current liabilities in the short term.? Costco does have a better quick ratio than Walmart which is 0.19 and the benchmark average for the industry, which is at a low, 0.11. 5 Return oninvestment15.48ROI is used in businesses to evaluate the probability of an investment. It is used to see the amount of return on an investment compared to the costs of the investment.? Costco has a ROI percentage which is higher than the industry average of 8% and also better than their top competitor Walmart, which is 9%. higher ROI percentage indicates that the investment gains of a project are favourable to their costs. Business BUSINESS MGMT 3006
You will get a plagiarism-free paper and you can get an originality report upon request.
All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more