C5-2 Crocs and Deckers Outdoor: Comparing footwesr manufecturers (LO 5-1) Crocs designs, develops, and manufactures consumer products from specialty resins. The company's primary product line is Crocs-branded footwear for men, women, and children. It sells its products through traditional retail channels, including specialty footwear stores. Deckers Outdoor designs and produces sport sandals as well as sheepskin and sustainable footwear. The company's products are marketed under three proprietary brands: Teva, Simple, and UGG. It sells its products through domestic retailers and global distributors and directly to consumers via the Intermet Financial ratios for each company follow. EBI denotes after-tax earnings before interest expense and excluding nonoperating gains or losses Selected Financial Ratios Crocs Deckers Outdoor 2012 2013 2014 2012 2013 2014 Annual growth rate Sales 12.2% 6.2% 0.5% 2.7% 10.1% 16.7% Profitability EBI'Sales margin Asset turnover Return on Assets (ROA) 0.173 1.47 0.255 0.013 1.40 0.018 (0.005) 0.119 0.127 0.147 1.63 0.152 0.170 0.239 1.42 1.28 1.34 (0.008) Selected expense items (% of sales) Cost of goods sold Selling, general, and administrative 45.9% 41.0% 47.7% 46.0% 50.4% 47.2% 55.3% 31.5% 52.7% 34.0% 51.7% 36.0% Selected asset utilization ratios 28.8 104.3 30.1 31.3 49.6 129.1 124.8 43.925.0 87.5 Days inventory held 104.8 100.7 Fiscal year ended March 31, 201 Note that Deckers Outdoor changed its fiscal year. The data reported for 2012 and 2013 are for the years ended December 31. There was a 3-month transition period for which Deckers reported financial information not shown in the data above. The data marked 2014 is for the year ended March 31, 2015. So, all of the periods shown are 12-month periods. Required 1. Which company was the more profitable in 2014? 2. What was the likely source of that company's superior profit performance in 2014? 3. Which company was the more profitable in 2012? 4. Which compan 5. How might the statisties provided for Deckers have been affected by the change in the fiscal year-end from December 31 to March 31? y better manages its receivables and inventories