2015	2014	2013
Ratio Calculations		Formula Used
Liquidity Ratios	0	0	0
Current Ratio	0.9695	0.8823	0.8462	Current Assets / Current Liabilities
Quick Ratio	0.2438	0.2013	0.1893	(Cash and cash equivalent + Net receivables) / Current Liabilities
	0	0	0
Activity Ratios	0	0	0
Inventory Turnover	8.1131	8.0604	7.9656	COGS / Average Inventory
Accounts Receivables Turnover	72.1548	72.1548	72.8291	Net sales / Average accounts receivables
Total Assets Turnover	2.3322	2.3408	2.3502	Net sales / Average Assets
Average collection period	5.0586	5.0586	5.0117	number of days / Accounts Receivables Turnover
	0	0	0
Financing Ratio	0	0	0
Debt - Ratio	0.6004	0.6203	0.6729	Total Debt / Total assets
Debt-to-Equity Ratio	1.5372	1.7654	2.0574	Total debt / Total equity
Times Interest Earned Ratio	10.985	11.5084	15.6668	EBIT / Interest
	0	0	0
Market Ratios	0	0	0
Earnings per share (EPS)	1.1645	1.1549	1.5836	Earnings for common shareholders / Common shares
Price Earnings (PE)	8.5874	8.6585	6.3148	MPS / EPS
	0	0	0
Profitability Ratios	0	0	0
Return on Equity (ROE)	0.2049	0.2248	0.3352	PAT / Average total equity
Return on Assets (ROA)	0.0798	0.0795	0.1096	PAT / Average total assets
Net Profit Margin	0.0336	0.0339	0.0467	Net profit / Sales
Operating Profit Margin	0.0559	0.0564	0.0725	Operating profit / Net sales

Part 2

In this part of your assessment, you will compose an analytical study reporting your results from Part 1. The CEO of your company is forming a task force to review the financials and present a review for the acquisition of ABC Company. Based on ABCs previous 3 years of financials, determine if this would be a good acquisition. You must form the task force to complete the task.

The CEO would like most of the departments to participate in the process. Using each departments area of expertise, what information would each of the following departments contribute to the final decision? Provide a minimum one-paragraph response for each department.

• Finance Department
• Sales Department
• Marketing Department
• Human Resources
• Legal Department

Part 3

After you have provided their input on the effect the acquisition will have on their department, perform an overall analysis to explain your recommendation to the CEO. Your analysis should include the following:

• Explain how the company is trending based on the year-over-year ratios.
• Compare the company to the industry average in Appendix A in the Excel workbook in areas of profitability, management effectiveness, and efficiency.
• Based on the above, summarize the pros and cons of ABC Company using both the year-over-year ratio analysis from Part 1 and the industry average comparisons from Part 3.
• Provide your final recommendation as to whether or not the CEO should invest in ABC Company.

Your paper should follow this format:

• Title page
• Introduction: the purpose of the analysis
• Analysis with subheadings of Part 1, Part 2, and Part 3
• Recommendation (overall conclusion)
• Reference page