Financial and managerial Analysis
Current Ratio: FWRD ‘s current ratio is 6.4 which looks excellent. It shows that this company has no problem meeting short-time obligation or managing inventories etc.
Quick ratio: I found the number is 5.9, we know approximately 50% of the top firms have quick ratios between 0.6 and 1.1, and approximately 80% of the top firms have quick ratios between 0.3 and 1.4. So I can assume that the company’s ability to pay the debt is strong. It also shows short-term debt risk of this company is very low.
Working Capital to Sales: FWRD ‘s working capital to sales is 28.5%. We know that approximately 50% of the top firms have working capital ...view middle of the document...
07, and the market average is 3.2. Obviously , this company has reached the average level in the market. So the investment has been multiplied by the market/book factor.
EBITDA: FWRD ‘s EBITA is about 108million.
EBIT/Operating Revenue: FWRD ‘s EBIT/Operating Revenue is 0.13
EBIT/Total Assets: FWRD ‘s EBIT/ Total Assets is 0.795
EBIT/Total Equity: FWRD ‘s EBIT/Total Equity is 0.194
Operating Revenue/ Total Assets: 1.29, which is not bad
Inventory Days:1 day
Inventory Turnover: 300
Collection Period: FWRD ‘s Collection Period is 43 days which is close to 40days. It means that the company can collect accounts receivable very quickly and the financial risk is low.
Operating Revenue/Fixed Assets: FWRD ‘s Operating Revenue/ Fixed Assets is 4.22 which is higher than 3. I think it means that the company had done a good job about utilizing its fixed cost.
Operating Revenue Growth from Previous Year: 11.64%
Forward Air Corporation provides transportation and related logistics services in...