Financial Decision Making Cartwright timberland fede dimensionn- Memorandum I would suggest Cartwright timberland Comp any not to take any more loans from Northrop Bank. As I analyzed financial ration 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 bed to equity. It operator 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 realise 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| liv e 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| summation 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| frosty 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- justness Ratio| 216.3%| 265.5%| 321.8%| 386.6%| Time-Interest-Earned Rati! o| 3.8| 3.1| 2.6| 2.1|If you want to get a total essay, order it on our website: BestEssayCheap.com
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