596 CHAPTER ELEVEN FINANCIAL STATEMENT ANALYSIS Black Corporation Years Ended December 31 2017 2016 2015 5 6 7 (dollar amounts in millions) Consolidated Financial Measures and Ratios Operating results Net earnings Per common share Operating income Operating margin Gross profit percentage Retum on net assets Return on shareholders' equity Interest coverage Financial position Working capital Current assets Current liabilities 9 10 $ 769 $ 2.73 1.312 4.4% 22.2% 12% 13.2% 4.2 times $ 675 $ 2.43 $ 1.239 4.4% 22.4% 12% 12.6% 4.2 times $ 656 $ 2.39 $ 1,205 3.9% 23.4% 12% 10.9% 4.2 times 12 13 14 15 $ 1,744 $ 6,462 $ 4,718 $ 1,061 $ 6,092 $ 5,031 S 972 $ 5,995 $5,023 16 / LEARNING OBJECTIVE Evaluate the trend in a company's current ratio 511-5 Examine the financial data of Black Corporation above. Show how to compute Blacks current ratio from 2015 to 2017. Is the company's ability to pay its current liabilities improv. ing or deteriorating