Case: 35 Financial Analysis and Forecasting TABLE 6 Historical and Pro Forma Ratio Analysis for Years Ended December 31 Pro Forma Industry 1990 1991 1992 1993 1994 Average Liquidity Ratios: Current ratio 3.07 2.68 X X 2.50 Quick ratio 1.66 1.08 0.73 1.10 1.00 Debt Management Ratios: Debt ratio 40.47% 46.33% X X 52.69% 50.00% TIE coverage 13.91 7.05 1.42 6.38 7.70 Asset Management Ratios: Inventory turnover (cost) 7.27 4.59 3.58 5.70 5.70 5.70 Inventory turnover (sales)b 9.03 5.59 4.19 X X 7.00 Fixed asset turnover 11.58 11.96 12.10 10.69 12.91 12.00 Total asset turnover 3.06 2.60 X 2.03 Y 3.00 Days sales outstanding (ACP)c 36.00 35.99 53.99 X 32.00 32.00 Profitability Ratios: Profit margin 5.50% 3.44% 0.39% X X 2.90% Gross profit margin 19.48% 17.82% 14.76% 17.50% 20.00% 18.00% Return on total assets 16.82% 8.95% X 5.74% 10.76% 8.80% ROE 28.26% 16.68% 1.96% X X 17.50% Other Ratios: Altman Z scored 6.55 4.68 X X 5.08 4.65 Payout ratio 25.00% 25.00% 25.00% 0.00% X 20.00%