Assess and discuss the patterns you see. Do you think Harbin was wise to pay $760 million for GNC?

1) For each quarter compute these ratios: 1: Operating Profit Margin Operating Income / Revenues Asset turnover Revenues / Total Assets Return on assets Operating profit / Total assets 7.23% 0.37 2.65% 7.64% 0.40 3.04% 7.91% 0.41 3.26% 3.44% 0.39 1.35% 3.80% 0.36 1.36% 6.28% 0.32 2.00% 9.12% 0.32 2.89% 5.34% 0.30 1.58% 2.95% 0.28 0.84% -35.13% 0.33 -11.73% -17.03% 0.28 -4.71% 2) Income II. Compute the year-to-year (same-quarter to same-quarter) Percentage Change in 1) Revenues N. A A NA USE ABS FORMULA N. A NA 3) Operating Profit margin INA NA INA 4) Asset turnover NA 5) Operating ROA N. A N. A 6) Cash N. A NA 7) Total assets N. A NA 8) Debt NA NA N. A NA NA NA NA N. A N. A NA NA NA NA NA N. A NA NA NA -1.8% 128.0% -47.5% -2.3% % -48.7% 5.0% 0.5% -23.4% -7.0% -346.6% -17.7% -19.8% -34.0% 154.5% 15.9% -16.4% - 13.6% 20.4% 15.3% -23.3% -11.5% 121.2% 12.6% -18.3% -14.0% 71.9% 55.2% -24.4% 17.3% 265.4% 13.8% -32.2% -14.1% -156.9% -22.2% -20.5% % -38.2% 74.1% 8.0% -31.4% -16.3% -1211.0% % -659.2% 4 69 4.6% -685.0% 0.2% -20.0% -100.0% -35.7% -621.0% -286.7% -12.6% % -263.1% -15.8% -26.4% -100.0% 1) For each quarter compute these ratios: 1: Operating Profit Margin Operating Income / Revenues Asset turnover Revenues / Total Assets Return on assets Operating profit / Total assets 7.23% 0.37 2.65% 7.64% 0.40 3.04% 7.91% 0.41 3.26% 3.44% 0.39 1.35% 3.80% 0.36 1.36% 6.28% 0.32 2.00% 9.12% 0.32 2.89% 5.34% 0.30 1.58% 2.95% 0.28 0.84% -35.13% 0.33 -11.73% -17.03% 0.28 -4.71% 2) Income II. Compute the year-to-year (same-quarter to same-quarter) Percentage Change in 1) Revenues N. A A NA USE ABS FORMULA N. A NA 3) Operating Profit margin INA NA INA 4) Asset turnover NA 5) Operating ROA N. A N. A 6) Cash N. A NA 7) Total assets N. A NA 8) Debt NA NA N. A NA NA NA NA N. A N. A NA NA NA NA NA N. A NA NA NA -1.8% 128.0% -47.5% -2.3% % -48.7% 5.0% 0.5% -23.4% -7.0% -346.6% -17.7% -19.8% -34.0% 154.5% 15.9% -16.4% - 13.6% 20.4% 15.3% -23.3% -11.5% 121.2% 12.6% -18.3% -14.0% 71.9% 55.2% -24.4% 17.3% 265.4% 13.8% -32.2% -14.1% -156.9% -22.2% -20.5% % -38.2% 74.1% 8.0% -31.4% -16.3% -1211.0% % -659.2% 4 69 4.6% -685.0% 0.2% -20.0% -100.0% -35.7% -621.0% -286.7% -12.6% % -263.1% -15.8% -26.4% -100.0%