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:
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Current Ratio
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Quick (Acid-Test)
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Ratio Debt-to-Equity Ratio
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Times Interest Earned
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Return on Assets (ROA)
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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