Managing Financial and Information Resources Coursework - 1

Managing Financial and Information Resources - Coursework Example plebeian profit margin showed an upward trend throughout the period it change magnitude from 57.76% in 2011 to 63.31% in 2013. This implies that the fellowship earns more cents per dollar of revenue, and this is favourable because more profit is generated to cover non-production costs. Operating profit margin increased in 2012 scarce decreased in 2013. Even though there is a decrease, the attach to is dumb profitable because it is generating enough money from its operations to pay for both variable and fixed costs. In general, the high societys profitability is improving as indicated by the increase in its profitability ratios (Kimmel et al 290). competency ratios indicate how the friendship is managing its liabilities and using its assets to generate income. Fabrique Arospatiale is relatively efficient in its operations. The debtor long time increased from 59.33 eld to 59.79 age in 2012, and further decrease d considerably to 34.31days in 2013. This improvement in debtor days implies that the connections efficiency in collecting its receivable increased (Kapil, 128). The company is, therefore, very liquid because it takes less time to collect its receivable hence increase in efficiency. Creditor days increased from 91.56 days to 97.5 days but decreased to 78.43 days. This indicates prompt payment to creditors. This reduction implies that the company is trying to take advantage of the discount that the suppliers is offering. Fabrique Arospatiale is inefficient in managing its inventory. It has higher values of stock days that is not favourable for the business. Stock days increased from 134.21 days in 2011 to 142.5 days in 2012 but decreased to 116.14 days in 2013. Even though the decrease is a good indicator, it is very minimal. The company has higher days inventory on hand.In terms of liquidity, Fabrique Arospatiale is very liquid. Both its biting test ratio and current ratio have v alues greater that one for all the years. The company is able to meet its near-term