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is not acceptable. B. Calculate the 2014 current and quick ratios

based on the projected balance sheet and income statement data.

What can you say about the company's liquidity position in

2012, 2013 and 2014 and as projected for 2014? We often think of

ratios as being useful (1) to managers to help run the business,

(2) to bankers for credit analysis, and (3) to stockholders for

stock valuation. Would these different types of analysts have an

equal interest in the liquidity ratios? C. Calculate the 2014

inventory turnover, days sales outstanding (DSO), fixed assets

turnover, and total assets turnover. How does Brinker's

utilization of assets stack up against that of other firms in its

industry? D. Calculate the 2014 debt, times-interest-earned, and

EBITDA coverage ratios. How does Brinker compare with the industry

with respect to financial leverage? What can you conclude from

these ratios? E. Calculate the 2014 profit margin, basic earning

power (BEP), return on assets (ROA), and return on equity (ROE).

What can you say about these ratios? F. Calculate the 2014

price/earnings ratio, price/cash flow ratio, and market/book ratio.

Do these ratios indicate that investors are expected to have a high

or low opinion of the company? G. Perform a common size analysis

and percentage change analysis. What do these analyses tell you

about Brinker? H. Use the extended Du Pont equation to provide a

summary and overview of Brinker's financial condition as

projected for 2014. What are the

firm's major strengths and weaknesses?

I. What are some potential problems and limitations of financial

ratio analysis? J. What are some qualitative factors that analysts

should consider when evaluating a company's likely future

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