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Explain the meaning of each of the johnson company ratios

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Question - Please review the following 6 ratios for Johnson Company and Lee Enterprises for the year ended 2014, and address the 2 questions below. Ratio Name

Johnson Company - Lee Enterprises

(a) Accounts receivable turnover 6.5 5.3

(b) Days' inventory outstanding 40 35

(c) Debt ratio 29.3% 25.7%

(d) Return on common stockholders' equity 14.7% 10.5%

(e) Current ratio 2.50 3.60

(f) Price/Earnings ratio 10 12

Instructions: This is a 2-part question.

(1) Explain the meaning of each of the Johnson Company ratios above.

(2) State which company performed better for each ratio.

Reference no: EM131643732

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