1. Evaluate and comment on any interesting trends you find. What ratios have changed significantly over the past three years? What does this indicate? Do the ratios suggest financial strength? What potential weaknesses do you see? What could the company do to improve these ratios?

RATIOS Liquidity Ratios Current ratio (Current asset/current liabilities) Acid Test Ratio (Curr asset - Inventory)/ Curr liab Cash ratio : Cash and Cash equivalents / Current Liabilities 0.853 0.588 0.056 0.898 0.647 0.171 0.907 0.607 0.190 Profitability Ratios Gross margin ratio: Gross profit /Sales Operating margin ratio Operating income Sales Net profit Margin ratio Return on assets ratio: Net Income / Total assets Return on equity ratio : Net income / Shareholder's equity 0.45 0.25 0.16 0.24 1.00 0.43 0.23 0.16 0.26 0.86 0.41 0.23 0.14 0.23 0.75 Leverage Ratios Debt ratio : Total liabilities/Total assets Debt to equity ratio: Total liabilities/ Shareholder's equity Interest coverage ratio: Operating income / Interest expenses Debt service coverage ratio: Operating income / Total debt service 0.764 3.24 31.79 7.23 0.691 2.23 23.26 12.06 0.694 2.27 3.69 1.87 Efficiency Ratios Asset turnover ratio : Net sales / Average total assets Inventory turnover ratio:Cost of goods sold / Average inventory Days sales in inventory ratio: 365 days / Inventory turnover ratio 1.60 5.53 66.03 1.72 6.48 56.34 1.66 5.99 60.91 Market Value Ratios Earning Per share: Profit for the yearo of shares Dividend per share Book value per share ratio: (Shareholder's equity-Preferred equity)/Total con Dividend payout ratio (Dividend Paid/Net Income) 57.63 63.50 57.47 1.10 54.26 47.50 63.36 0.88 42.55 25.00 56.62 0.59 RATIOS Liquidity Ratios Current ratio (Current asset/current liabilities) Acid Test Ratio (Curr asset - Inventory)/ Curr liab Cash ratio : Cash and Cash equivalents / Current Liabilities 0.853 0.588 0.056 0.898 0.647 0.171 0.907 0.607 0.190 Profitability Ratios Gross margin ratio: Gross profit /Sales Operating margin ratio Operating income Sales Net profit Margin ratio Return on assets ratio: Net Income / Total assets Return on equity ratio : Net income / Shareholder's equity 0.45 0.25 0.16 0.24 1.00 0.43 0.23 0.16 0.26 0.86 0.41 0.23 0.14 0.23 0.75 Leverage Ratios Debt ratio : Total liabilities/Total assets Debt to equity ratio: Total liabilities/ Shareholder's equity Interest coverage ratio: Operating income / Interest expenses Debt service coverage ratio: Operating income / Total debt service 0.764 3.24 31.79 7.23 0.691 2.23 23.26 12.06 0.694 2.27 3.69 1.87 Efficiency Ratios Asset turnover ratio : Net sales / Average total assets Inventory turnover ratio:Cost of goods sold / Average inventory Days sales in inventory ratio: 365 days / Inventory turnover ratio 1.60 5.53 66.03 1.72 6.48 56.34 1.66 5.99 60.91 Market Value Ratios Earning Per share: Profit for the yearo of shares Dividend per share Book value per share ratio: (Shareholder's equity-Preferred equity)/Total con Dividend payout ratio (Dividend Paid/Net Income) 57.63 63.50 57.47 1.10 54.26 47.50 63.36 0.88 42.55 25.00 56.62 0.59