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Cherokee Financial Ratios Paper

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The Burlington cash ratio is .58 the cash + cash equivalents/liabilities explain the answer. According to Burlington ratio, being 0.58 the company face difficulties paying their bills because of receiving less than one dollar. If I was a manager for Burlington company, nothing I would change because of the cash + cash equivalents are 133,286 and is sufficient to meet the needs financially (Burlington Form 10-K,2018). However, I would make any changes to the company to increase the cash. A Current ratio is 2.97 which comes from current assets and current liabilities. According to Burlington ratio, being 2.97 the company shows as of 2018 can maintain their current liabilities. The decision as a manager of Burlington, continue to maintain the …show more content…

The future outcome for quick assets of the company in the form of gift cards and incoming cash. The quick assets change the company income into cash instantly. In the future outcome may or may not remain the same. The decision as a manager of the company, continue to monitor the account, as soon as the cash comes in (Bethel University,2017). Debt to Assets of the company is 0.39. According, to Burlington debt to assets, face problems with creditors. Creditors receive their money first, and they’re providing the finances the company need. The future of Burlington’s debt, pay the money and the company stays out of debt. According to the future, debt is not a problem because it is significant from the number shown from liabilities and assets. Both numbers are over seven figures and will continue to grow with sales. Manager’s decisions, a goal as a company to overcome debt. Receivable Turnover Ratio for the company is 0.10. According, to Burlington receivable turnover ratio the company does not receive much turnover. The amount of times a year is low for a company and the number should be between 1 and 2. The decision as a manager, the team investigates the company overall and see what changes the operation

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