Accounting Pz Case

Pizza, Pizza (PZ) The conjunction with better results for each analysis is highlighted yellow. As a vendor I would be most unforced to supply raw materials and other goods to California Pizza Kitchen, Inc., which has a better result for the strain turnover proportion * The size up turnover ratio measures the number of times, on average, that inventory is interchange during the accounting period. The high the ratio, the faster the company is selling its inventory. As a customer I would be most involuntary to order my inventory from California Pizza Kitchen, Inc., which has better results for pull in margin reckon, inventory turnover rate and profit margin * The arrant(a) margin mate measures the percentage of the selling price of inventory that is gross profit and also indicates the companys susceptibility to maintain an adequate selling price above its make up of goods sold. In general, the more competitive the company is, the lower this ratio will be. * A high inventory turnover rate guarantees the freshness of the companys product and also goes with a low profit margin.

As a lender I would be most willing to extend a long loan to BJs Restaurant, which has better results for flowing ratio, afoot(predicate) notes debt coverage ratio and debt to equity ratio (See attachment fiscal Statement Ratios for the most recent fiscal year). backing reason(s): * The current ratio measures a companys efficacy to pay its current liabilities with its current assets, for BJs Restaurant, a current ratio of 1.29 indicates that for every dollar of current liabilities, the company has $1.29 of current assets. * Similarly, the current cash debt coverage ratio measures a companys liquidity using net cash flows from operational activities instead of current assets. * The debt to equity ratio provides a measure of creditors protection in the event of the company not beingness able to pay its debts (insolvency), meaning that all things being equal, the higher the debt to equity... If you want to get a full essay, order it on our website: Orderessay

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