¶ … Borders Group
Day's Sales in Inventory
Inventory Turnover
Working Capital
Current Ratio
Cash Ratio
Sales/WC
OCF/current maturities
Borders Group
Debt Ratio
OCF/Total Debt
Borders Group
Net Margin
ROA
ROE
Gross Margin
ROA and ROE are n/a because there were no returns, as the company recorded a net loss for the year.
Borders Group
EPS
OCF/Cash Dividends
The results above illustrate that Borders has not had a good couple of years. The company is losing money, and this is reflected in the loss per share, and the lack of returns on assets and equity. The gross margin seems adequate to deliver profit, but it has decreased in the past year. The net margin, however, has been negative in both years, because the company has posted losses Borders has a lot of debt, with a high debt ratio, and low operating cash flow to debt ratio. While its immediately liquidity is not an issue in terms of its current ratio, a major point of concern for the company is how little cash it has. Borders has a low cash ratio, and a lot of inventory on the books. The inventory turnover...
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