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6) Do the ratios indicate that investors are expected to have a high or low opinion of the company?Explain. Year 2 Year 1 Year 0

6) Do the ratios indicate that investors are expected to have a high or low opinion of the company?Explain.

Year 2 Year 1 Year 0 Industry
Current Ratio 1,86x 1,1x 2,3x 2,7x
Quick Ratio 0,67x 0,4x 0,8x 1,0x
Inventory turnover 4,10x 4,5x 4,8x 6,1x
DSO 44,9 39 36,8 32
Fixed asset turnover 8,61 6.2x 10.0x 7.0x
Total asset turnover 2,01 2.0x 2.3x 2.5x
Debt ratio 55,61% 95,40% 54,80% 40,00%
TIE 6,3x -3.9x 3,3x 6,2x
EBITDA coverage 5,5x -2,5x 2,6x 8,0x
Profit margin 3,60% -8,9% 2,60% 3,60%
Basic earning power 14,40% -24,1% 14,20% 17,80%
ROA 7,25% -18.1% 6,00% 9,00%
ROE 16,34% -391,4% 13,30% 18,00%
Price/Earnings 12,01x -0,4% 9,7x 14,2x
Price/Cash Flow 8,2x 0,6x 8,0x 7,6x
Market / Book 1,96x 1,7x 1,3x 2,9x
Book value per share $6,21 $1,33 $6,64 N/A

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