1. Current Ratio = current assets / current liabilities

2010: 117,850 / 64,926 = 1.82

2011: 159,023 / 83,259 = 1.91

2012: 334,293 / 285,095 = 1.17

2013: 331,316 / 234,677 = 1.41

2014: 135,796 / 363,640 = 0.37

2. Receivables turnover = net credit sales / average net receivables

2010: 246,169 / 42,162 = 5.84

2011: 421,595 / ((42,162 +49,542)/2) = 9.19

2012: 774,879 / ((49,542 + 196,884)/2) = 6.29

2013: 1,054,100 / ((196,884 + 83,254)/2) = 7.53

2014: 520,041 / ((83,254 + 103,279)/2) = 5.58

3. Days sales in receivables = 365 / receivables turnover ratio

2010: 365/5.84= 62.5 = 63 days

2011: 365/9.19= 39.72 = 40 days

2012: 365/6.29= 58.03 = 58 days

2013: 365/7.53= 48.47 = 48 days

2014: 365/5.58= 65.41 = 65 days

4. Inventory turnover = cost of goods sold / average inventory

2010 Opening inventory = 14,621-9,696= 4,925

2010: (4,925+125,171-14,621)/ ((4,925+14,621)/2)= 11.82

2011: (14,621+211,000-29,622)/ ((14,621+29,622)/2)= 8.86

2012: (29,622+516,867-11,331)/ ((29,622+11,331)/2)= 26.14

2013: (11,331+656,334-150,491)/ ((11,331+150,491)/2)= 6.39

2014: (150,491-40,616)/ ((150,491+40,616)/2)= 1.15

5. Inventory holding period = 365 / inventory turnover ratio

2010: 365/11.82= 30.88 = 31 days

2011: 365/8.86= 41.20 = 41 days

2012: 365/26.14= 13.96 = 14 days

2013: 365/6.39= 47.12 = 47 days

2014: 365/1.15= 317.39 = 317 days

6. Rate of return on net sales = net income / net sales

2010: 29,451/ 246,169= 0.1196 = 11.96%

2011: 38,833/421,595= 0.0921 = 9.21%

2012: 49,302/774,879= 0.0636 = 6.36%

2013: 62,919/1,054,100= 0.0597 = 5.97%

2014: -326,463/520,041= -0.6278 = -62.78%

7. Rate of return on total assets = (net income + interest expense) / average total assets

2010: (29,451+716)/ (162,087)= 0.1861 = 18.61%

2011: (38,833+711)/ ((162,087+213,280)/2)= 0.2107 = 21.07%

2012: (49,302+2,850)/ ((213,280+478,401)/2)= 0.1508 = 15.08%

2013: (62,919+4,816)/ ((478,401+464,210)/2)= 0.1437 = 14.37%

2014: (-326,463)/ ((464,210+299,556)/2)= -0.8549 = -85.49%

8. Rate of return on stockholders equity = (net income preferred dividends) / average stockholders equity

2010: (29,451-0)/ (93,376)= 0.3154 = 31.54%

2011: (38,833-0)/ ((93,376+124,462)/2)= 0.3565 = 35.65%

2012: (49,302-0)/ ((124,462+163,325)/2)= 0.3426 = 34.26%

2013: (62,919-0)/ ((163,325+213,426)/2)= 0.3340 =33.40%

2014: (-326,463-0)/ (213,426+ -116,268)/2)= -6.7202 = -672.02%

9. Asset turnover = sales / total assets

2010: 246,169/ 162,087= 1.52

2011: 421,585/213,280= 1.98

2012: 774,879/478,401= 1.62

2013: 1,054,100/464,210= 2.27

2014: 520,041/229,556= 1.74

10. EPS = (net income preferred dividends) / number of common shares outstanding

2010: (29,451-0)/70,699,487= 0.00042

2011: (38,833-0)/81,541,569= 0.00048

2012: (49,302-0)/86,169,014= 0.00057

2013: (62,919-0)/86,169,014= 0.00073

2014: (-326,463-0)/86,169,014= -0.0038

11. Debt ratio = total liabilities / total assets

2010: 68,711/162,087= 0.42

2011: 88,818/213,280= 0.42

2012: 315,076/478,401= 0.66

2013: 250,784/464,210= 0.54

2014: 415,824/299,556= 1.39

12. Times interest ratio = income from operations (EBIT) / interest expense

2010: 40,059/716= 55.95

2011: 54,898/711= 77.21

2012: 64,182/2,850= 22.52

2013: 93,665/4,816= 19.45

2014: N/A

a. How is the company doing regarding each ratio?

b. How well is the company performing in terms of liquidity, profitability, and leverage?

c. What are the key indicators that showed the downfall?