BCE Inc.'s revenue grew 3.12% in 2018. However, the company had a net loss of -2.524% as costs exceeded sales. The return on assets was 5.2%, which is considered good. Return on equity was 14%, also within the good range of 15-20%. Working capital was negative at -4636 due to current liabilities exceeding current assets. Current and quick ratios of 5.5% and 5.14% respectively indicated strong short-term liquidity. The total debt ratio was 0.63, showing equity funds the majority of assets. Inventory turns over quickly due to high sales and low inventory levels, representing efficient operations.
BCE Inc.'s revenue grew 3.12% in 2018. However, the company had a net loss of -2.524% as costs exceeded sales. The return on assets was 5.2%, which is considered good. Return on equity was 14%, also within the good range of 15-20%. Working capital was negative at -4636 due to current liabilities exceeding current assets. Current and quick ratios of 5.5% and 5.14% respectively indicated strong short-term liquidity. The total debt ratio was 0.63, showing equity funds the majority of assets. Inventory turns over quickly due to high sales and low inventory levels, representing efficient operations.
BCE Inc.'s revenue grew 3.12% in 2018. However, the company had a net loss of -2.524% as costs exceeded sales. The return on assets was 5.2%, which is considered good. Return on equity was 14%, also within the good range of 15-20%. Working capital was negative at -4636 due to current liabilities exceeding current assets. Current and quick ratios of 5.5% and 5.14% respectively indicated strong short-term liquidity. The total debt ratio was 0.63, showing equity funds the majority of assets. Inventory turns over quickly due to high sales and low inventory levels, representing efficient operations.
year. These figures reveal that company has good sales from the year 2017 to 2018. Net Profit: The net profit of the company is in negative figure i.e., -2.524. Data shows that money that company made from selling its products and services is not enough to cover the cost of making or selling its products. Return on assets: As we compare the earnings of a business to the total assets invested in it. The measure indicates that management has optimally utilized its assets to generate a reasonable return for a business. The return on assets of the company is 5.2%. ROAs over 5% are generally considered good. Return on Equity: By comparing the annual net income of the Company to its shareholders’ equity we observe that management have good ability to generate income from the equity available to it. ROEs of 15-20% are generally considered good. The return on equity of BCE.Inc is 14%. Working Capital: Working Capital of the company is in negative with -4636. This data shows that current liabilities that need to be paid within one year exceeds the current assets that are monetizable over the same period. Current Ratio: Acceptable current ratios vary from industry to industry and are generally between 1.5% and 3% for healthy businesses. The higher the ratio, the more liquid the company is. If the current ratio is too high (much more than 3%), as in the case of BCE.Inc 5.5%, then the company may not be using its current assets or its short-term financing facilities efficiently. This may also indicate problems in Working Capital management. Quick Ratio: Quick ratio is very important part of analysis; this indicates company’s short-term liquidity position and ability to instantly use its near-cash assets to pay down its current liabilities. The higher the ratio, the more financially secure a company is in short term. BCE.Inc was secure in the year 2017-2018 with 5.14%. Total Debt Ratio: Debt ratio is useful to check company’s long-term solvency. In general, a ratio greater than 1 shows that a considerable portion of debt is funded by assets. BCE.Inc has 0.63 of its total debt- ratio that is below 1 it translates to the fact that a greater portion of company’s assets is funded by equity. Day Sales in Inventory: By comparing both years, the sales of the company are high and inventory level is low. It means that business can quickly get rid of its Inventory by way of sales and thus represents efficient operations.