The return to form mirrored somewhat the bounceback in the current ratio last year. However, it is worth considering that the return on equity increased only because earnings did -- equity did not increase as it should have. Had the increase in profits been financed in part by debt rather than entirely by debt, the ROE would not have rebounded as it did last year. Days receivable is an indicator that highlights the ability of the firm to collect on the debts owed to it by the customers. For HP, the days receivable for last year was 62; for the year previous it was 61 and for the year before that it was 90.5. What this indicates is that for the past two years, HP has improved its days receivable considerably. Two years ago, it had a very high level of accounts receivable and over the course of the past two years...
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now