AMP 415 Module 4 DQ 2

I did mine on Jack in the Box. I came to find that they have very low ratios compaird to others in their Industry.

A Quality of Income Ratio (cash flow from operating activities/Net income) measures the portion of income that was generated in cash. A higher quality of income ratio indicates greater ability to finance operating and other cash needs from operating cash flows. A higher ratio also indicates that it is less likely that the company is using aggressive revenue recognition policies to increase net income.

Quality of income Jack in the Box

201,022/88,950= 2.26

The Capital Acquisition Ratio (Cash flow from operating activities/cash paid for property, plant, and equipment) reflects the portion of purchases of property, plant, and equipment financed from operating activities without the need for outside debt or equity financing or the sale of other investments or fixed assets. A high ratio benefits the company because it provides the company with opportunities for strategic acquisitions. (Libby et al., 2004).

Jack in the Box

Capital Acquisition Ratio

201,022/ (60,525) = -3.321

http://finance.yahoo.com/q/cf?s=JACK+Cash+Flow&annual

https://lc-ugrad1.gcu.edu/learningPlatform/user/users.html?token=HinnU1YPRa6yR1esyeq4rZIYtzF7chdqxr%2fCs6h0u38mHTvoEkWluXdadPFTh5y3QJF14khyMuxD1xCoCED2Vg%3d%3d&operation=home&classId=1600504#/learningPlatform/loudBooks/loudbooks.html?viewPage=current&operation=innerPage¤tTopicname=Cash Flows&topicMaterialId=5dd94a71-51ab-4c40-abda-db3edc984be2&contentId=d29e2fd9-7f2f-4d41-9e55-84a104779bd8&