Calculate the profit margin for 2014 and evaluate the result against the industry average in Exhibit, explaining why it compares favorably or unfavourably (round to two decimal places).
Current ratio........................................................... 1.6:1
Acid-test ratio .......................................................... 1.1:1
Accounts receivable turnover .................................. 16 times
Days’ sales uncollected............................................ 21 days
Merchandise turnover ............................................. 5 times
Days’ sales in inventory ........................................... 70 days
Total asset turnover ................................................. 2.3 times
Accounts payable turnover...................................... 4 times
Debt ratio ............................................................... 35%
Equity ratio ............................................................. 65%
Pledged assets to secured liabilities.......................... 1.4:1
Times interest earned .............................................. 50 times
Profit margin........................................................... 14%
Gross profit ratio..................................................... 18%
Return on total assets .............................................. 20%
Return on common shareholders’ equity................. 32.7%
Book value per common share................................ $8.63
Book value per preferred share................................ $15.00
Earnings per share ................................................... $1.79
Price–earnings per share .......................................... 18.2
Dividend yield ......................................................... $0.35