Financial Decision Making Cartwright timberland fede confine- Memorandum I would suggest Cartwright timberland Comp some(prenominal) not to take any more loans from Northrop Bank. As I analyzed financial proportionalityn of Cartwright Lumber Company, their performances from 2001 to 2004 pretend been gone down rapidly. The Leverage ratio have shown that Cartwright Lumber Company already have three-times of debts comp ared to equity. It direction that if Cartwright Lumber Company cannot interest to creditors it would cause going to bankruptcy. I would recommend that financial support by issuing stocks. Dividends to shareholders are not mandatory. But gainful interest to creditors is mandatory. Therefore, company could attend cash balance to indue to purchase equipment. 1. Profitability| 2001| 2002| 2003| 2004 prime(a) Quarter| ROA| 5.2%| 4.6%| 4.7%| 0.8%| ROE| 11.5%| 11.2%| 12.6%| 2.5%| Â | Â | Â | Â | Â | 2.Liquidity| 2001| 2002| 2003| 2004 number one Quarter| watercourse balance| 1.8| 1.6| 1.5| 1.4| Acid Ratio| 0.9| 0.7| 0.7| 0.5| Â | Â | Â | Â | Â | 3.Efficiency| 2001| 2002| 2003| 2004 First Quarter| addition disturbance| 2.9| 0.

8| 0.8| 0.2| A/R swage| 9.9| 2.6| 2.5| 0.5| A/R collection period| 37| 143| 146| 673| scrutinise Turnover| 5.1| 1.3| 1.3| 0.3| Inventory Turnover Period| 71.4| 287.0| 278.5| 1362.1| Operating bike| 108.2| 429.5| 424.6| 2035.2| inflexible Asset Turnover| 13.5| 3.8| 4.5| 1.1| Â | Â | Â | Â | Â | 4.Leverage| 2001| 2002| 2003| 2004 First Quarter| Debt Ratio| 98.3%| 109.6%| 120.0%| 126.1%| Debt-to- tr uth Ratio| 216.3%| 265.5%| 321.8%| 386.6%| ! Time-Interest-Earned Ratio| 3.8| 3.1| 2.6| 2.1|If you want to get a rise essay, order it on our website:
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