S&S Air Incorporated has relatively decent ratios when compared to the industry with only a few outliers. As far as their current ratio goes they are ever so slightly above the median with a 1.45 ratio compared to the 1.43 median industry ratios. This a pretty good thing. A high current ratio signifies liquidity, the higher the current ratio the better in most cases. The quick ratio is the same for S&S. They are ever so slightly higher at .88 than the industry median of .84. The higher the quick ratio the better the liquidity. The lower the ratio the more the company is relying on inventory which is negative. Since S&S is above the median they are doing just fine. The company’s total asset turnover is 1.30 which puts it in the upper quartile of 1.29 for other industries. The company being in the upper quartile is a great thing. That means for every dollar in assets we generated $1.30 in sales. The higher the better because they are making more than …show more content…
It falls in the upper quartile at 1.63 compared to the 1.53. The higher the ratio the weaker the company’s equity position. The company’s profit margin is not the best. The profit margin is 5.01 percent which falls between the lower quartile of 4.05 percent and the median of 5.15 percent. The margin indicates how much money the company makes per dollar in sales. S&S’s company’s return on assets ratio is not the best. It sits at 6.51 percent which barely above the lower quartile of 6.05 percent. This is a bad thing because the ROA ratio indicates how well a company can convert its investments in assets into profits. Finally, there is the company’s return on equity ratio. As far as that goes it slightly is above the lower quartile too of 9.93 percent. The company’s percentage is 10.62 percent. This is also a negative thing. The percentage indicates how much profit a company will generate with the money shareholders have invested in the company (Staff,