MGT 695 - Ratio Trends for J.M. Smucker

MGT 695 - Ratio Trends for J.M. Smucker

Instructions: 

Part 1: 3-Year Ratio Trend Analysis

Describe whether each ratio is increasing, decreasing, or staying stable Explain what that means for the company (liquidity, debt, profitability, etc.) Say whether each trend is good or bad and why Using the ratios in the Excel file, explain the trends over the three years for:

• Current Ratio

• Quick (Acid-Test)

• Ratio Debt-to-Equity Ratio

• Times Interest Earned

• Return on Assets (ROA)

• Return on Equity (ROE)

Part 2: Industry Comparison

Compare Smucker’s ratios to the industry averages

Explain if the company is performing better or worse than the industry

Look at the trend: is the company getting closer to or further from industry averages?

Explain if that’s a positive or negative sign

Use readyratios.com and/or investing.com to find industry averages for these same ratios.

The ratios from the websites may not exactly match the Excel file — that’s okay

Focus more on analysis and explanation rather than recalculating anything

Use the Excel file as your main source for the company’s data