Evaluate the overall performance of the two companies and in terms of :

1. Profitability

2. Operating Management

3. Investment Management

4. Financial Management

	Berts Bikes		Tobys Tyres
Profitability
Gross Profit Margin (given)		19%		21.3%
Net Profit Margin (given)		3.5%		4.6%
EBIT/Sales (given)		7.0%		9.3%
Total Asset Turnover = Sales/Total Assets	5000/2500	2x	7500/4000	1.875x
Return on Assets = EBIT/Total Assets	350/2500	14%	700/4000	17.5%
Operating Management
Current Ratio = Current Assets/Current Liabilities	1280/650	1.97x	2560/1200	2.13x
Quick Ratio = (Current Assets Inventory)/Current Liabilities	(1280-680)/650	0.92x	(2560-1250)/1200	1.09x
Quick Ratio = (Current Asset Inventory)/(Current Liabilities Line of Credit	(1280-680)/(650-50)	1.0x	(2560-1250)/(1200-200)	1.31x
Inventory Turnover = Cost of Goods Sold/Inventory	4050/680	5.96	5900/1250	4.72
Accounts Receivable Turnover = Sales/Accounts Receivable	5000/460	10.87x	7500/1220	6.15x
Average Collection Period = 365/Accounts Receivable Turnover	365/10.87	33.58 days	365/6.1	59.34 days
Investment Management
Return on Equity = Profit /Total Equity	174/1250	13.9%	345/1500	23%
Earnings Yield = EPS Share Price	0.29/2.23	13%	0.986/4.50	21.91%
Proposed Dividend Payout = Total Dividend/Profit	87/174	0.50	241.5/345	0.70
Financial Management
Leverage = Debt/Total Assets	1250/2500	50%	2500/4000	62.5%
Leverage = Debt/Equity	1250/1250	100%	2500/1500	167%
Times Interest Earned = EBIT/Interest	350/60	5.83x	700/125	5.6x