XACC 280\Week 7 - dq2
Given the data, would you have invested in Quality Department Store in 2006? Explain why or why not. Summarize your analysis of the financial data to support your reasoning. What recommendations would you make to improve the financial health of this company? Explain why.
In order to make a decision on whether to invest in Quality Department Store, other type of data is also crucial like some macroeconomic fundamentals that may lead to a decrease in consumer spending. Moreover, I will compare the analysis obtained from the QDS with another alternative firm that may provide greater returns on my investment. However, if my decision has to be based upon the ratios alone then need to look at economic factors and alternatives is not important. With that said, the question asks if I would invest based solely on the data in the various ratios, so I will assume that there are no worries about any types of economic factors and there are no other worthy alternatives to invest in.
I will decide this by analyzing its performance using the ratios. Below is the ratio analysis of Quality Department Store: