Select all of the examples of a scenario in which the firm is demonstrating financial weakness. a. An ROA of 0.7 when the industry average is 1.4.
b. A current ratio of 0.5.
c. An ROE of 1.4 when the industry average is 1.15.
d. A quick ratio above the industry average of 0.9.
e. A fixed asset ratio of 0.6 when the industry average is 1.1.
f. A debt capital ratio of 0.7 when the industry average is 0.15

a. An ROA of 0.7 when the industry average is 1.4

b. A current ratio of 0.5.

f. A debt capital ratio of 0.7 when the industry average is 0.15

e. A fixed asset ratio of 0.6 when the industry average is 1.1

Explanation:

A return on the asset ration may be a profitable ratio that indicates the efficiency of the usage of the assets in any business. When the ratio is higher it is better. A lower ratio shows the financial weakness of a firm for utilizing the assets.

A 0.7 debt ratio that is higher than the industry average represents a higher leverage and the higher solvency risk.

The 0.6 fixed asset ratio shows a lower utilization of the fixed assets in the generation of the turnover. Hence, it shows a financial weakness.

Current ratio represents the coverage of the current assets for the meeting of a short term obligations. The ratio is desired to be 2.

Ratio of 0.5 shows a current asset that is not sufficient for meeting the current liabilities.

step 1: create a plan

step 2: inventory facility equipment/assets

step 3: create preventive maintenance procedures

step 4: create preventive maintenance schedules

step 5: train your maintenanceteam

step 6: analyze – adjust - improve

or

step 1 – pm procedure design: doing the effective things

step 2 – pm procedure scheduling: efficient use of people and resources

step 3 – pm lubrication engineering

step 4 – pm training: back on the chain gang

step 5 – pm program management plan

step 6 – communicate, communicate, communicate