Below are ratios for Alpha Co. Analyze the information contained in the ratios. How is the company doing? Liquidity ratios (3 pts.), Management ratios (3 pts.), Debt ratios (3 pts.) Profit ratios (3 pts.), ROE and Dupont analysis (4 pts.) Do you have any reservations about your analysis, and why? (2 pts.) Industry Average 2012 2011 2010 Current 1.8 1.75 1.83 1.7 DSO 51.44 51.21 57.02 A/R Turnover 29.5 7.1 7.13 6.4 Inventory Turnover 11.2 39.46 40.01 40.01 Debt Ratio 1.7 0.82 0.83 0.88 LT Debt/Equity 1.53 4.48 4.97 5.87 TIE 2.7 1.71 1.63 1.49 FATO 2.01 1.97 1.86 TATO 1.2 0.88 0.86 0.79 Gross margin 71.90% 86.40% 86.10% 86.00% Profit margin 5.50% 2.16% 2.01% 2.00% ROA 7.60% 1.90% 1.73% 1.58% ROE 14.00% 12.79% 12.47%

13.05%