After reviewing the following calculation, provide a brief analysis of each of the ratios. Also provide a brief evaluation regarding the companys performance as it relates to the four categories listed above, plus the DuPont Equation. Finally, discuss how these ratios will help make appropriate financial decisions as they relate to the role as a financial manager, and also assist in achieving the firms financial management goals.

1. Profitability Ratios
   1. Gross Margin Percentage-

Gross Margin Percentage = Net Income/Sales

For 2018: Gross Profit is 58.26B, Sales 130.86B

Gross Margin Percentage = 58.26B/130.86B

= 0.44520861989

For 2017: Gross Profit 57.52B, Sales 126.03B

Gross Margin Percentage = 57.52B/126.03B

= 0.45639927001

2. EBIT Margin Percentage

EBIT Margin Percentage = EBIT/Sales

For 2018: EBIT Margin Percentage = 2.88B/130.86B

EBIT Margin Percentage =: 2.88B/130.86B

= 0.02200825309

For 2017: EBIT Margin Percentage = 23.45B/126.03B

EBIT Margin Percentage = 23.45B/126.03B

= 0.18606680949

2. Resource Management Ratios:
   1. Age of Inventory Measure the Firms management of its inventory

Age of Inventory (Days of Inventory) = 365/Inventory Turnover

Inventory Turnover = COGS/Inventory

For 2018: COGS = 72.61B, Inventory = 1.34B

Age of Inventory = 365days/Inventory Turnover

Inventory Turnover = COGS/Inventory

= 54.1865671642

365/54.1865671642

= 6.73B

For 2017: COGS=68.51B, Inventory 1.03B

=68.51/1.03

=66.5145631068

365/66.5145631068

=5.48752007006

2. Age of Accounts Receivable

Age of Accounts Receivables = 365days / AR Turnover

AR Turnover = Sales / Receivables

For 2018: Sales=130.86B, Receivables=25.86B

130.86/25.86=

AR Turnover= 5.06032482599

365/ 5.06032482599

= 72.1297569921

For 2017: Sales=126.03B, Receivables=23.49B

126.03/23.49=

5.36526181354

365/ 5.36526181354

=68.0302308974

3. Age of Accounts Payable

Age of Accounts Payable = 365 / AP Turnover

AP Turnover = Purchases / Payables

For 2018: Cost of Goods Sold- 72.61B

For 2017: Cost of Goods Sold- 68.51B

Inventory Purchases = (Ending Inventory Beginning Inventory) + Cost of Goods Sold

For 2017: (1.03B 1.2B) + 68.51

=68.34B

68.34B/7.06B

AP Turnover= 9.67988668555

365/9.67988668555

Age of AP = 37.70705297

For 2018: (1.03B-1.34B) + 72.61B

=72.3B/7.23B

=10B

365/10

=36.5

3. Liquidity Ratio:
   1. Current Ratio
4. Leverage Ratios
   1. Debt-to-Assets Ratio
   2. Debt-to-Equity Ratio
   3. Interest Coverage

In addition, you have decided to evaluate the Return on Equity (ROE) of the company by calculating the DuPont Ratio, including the Profit Margin, Asset Turnover, and Financial Leverage Ratios.

Year 2017:

Return on Equity (DuPont Ratio) = Profit Margin x Total Asset Turnover x Financial Leverage

Profit Margin = Net Income / Net Sales

=30.1B/126.03B

= 0.238832024121241

Total Asset Turnover = Net Sales / Average Total Assets

Average total Assets= 2016 Total Assets + 2017 Total Assets / 2

(244.18B+257.14B) /2

=250.66

TAT= 126.03/250.66

TAT= 0.5027926274634964

Financial Leverage = Total Assets / Total Equity

257.14B/44.69B

= 5.75385992392034

Profit Margin x Total Asset Turnover x Financial Leverage

0.238832024121241 x 0.5027926274634964 x 5.75385992392034

Return on Equity (DuPont Ratio) =0.6909406515199963