Financial Ratios Calculations Tri$-$Mark Industry Average Analysis of the results of the Financial Ratios

Current Ratio $2\mathrm{.}200$ Liquidity:

Quick Ratio $1\mathrm{.}500$

Cash Ratio $0\mathrm{.}135$ Financial Leverage:

Total Debt Ratio $0\mathrm{.}430$

Cash Coverage $10\mathrm{.}600$

Receivable Turnover $30\mathrm{.}000$ Asset management:

Days' Sales in Receivables $12\mathrm{.}000$

Total Asset Turnover $2\mathrm{.}800$ Profitability:

Inventory Turnover $30\mathrm{.}100$

Days' Sales in Inventory $11\mathrm{.}500$

Profit Margin $0\mathrm{.}045$

Return on Assets $($ROA$)0\mathrm{.}126$

Retorn on Equity $($ROE$)0\mathrm{.}221$

Du$-$Pont An$$lisis Tri$-$Mark Promedio Industria Du$-$Pont analysis broken down by terms

$1-$ Profit Margin $0\mathrm{.}0\%4\mathrm{.}5\%$

$2-$ Total Assets Turnover $($TAT$)0\mathrm{.}0002\mathrm{.}800$

$3-$ Equity Multiplier $($EM$)$

$4-$ ROA $=(1$ x $2)0\mathrm{.}0\%12\mathrm{.}6\%$

$5-$ ROE $=(3$ x $4)0\mathrm{.}0\%0\mathrm{.}0\%$ CASE FINANCIAL RATIOS Trimark Products, Inc.

$1-$ Calculate and analyze financial ratios. Using the $2017$ income statement and Trimark Products Inc. balance sheet, used in the Financial Statements attached Excel file, calculate the following financial ratios $($use $365$ days $/$ year$).$

Financial Ratios Calculations

Tri$-$Mark

Industry Average

Current Ratio

$2\mathrm{.}200$

Quick Ratio

$1\mathrm{.}500$

Cash Ratio

$0\mathrm{.}135$

Total Debt Ratio

$0\mathrm{.}430$

Cash Coverage

$10\mathrm{.}600$

Receivable Turnover

$30\mathrm{.}000$

Days' Sales in Receivables

$12\mathrm{.}000$

Total Asset Turnover

$2\mathrm{.}800$

Inventory Turnover

$30\mathrm{.}100$

Days' Sales in Inventory

$11\mathrm{.}500$

Profit Margin

$0\mathrm{.}045$

Return on Assets $($ROA$)$

$0\mathrm{.}126$

Retorn on Equity $($ROE$)$

$0\mathrm{.}221$

$2-$ Analysis: How is the company doing relative to its industry in the areas of liquidity, asset management, leverage, and profitability? Briefly explain each of them in general terms of the reasons within the same category.

$3-$ DuPont Analysis. Based on the ratios calculated in the previous point $($# $2),$ and along with the industry averages provided, perform a DuPont analysis on the key profitability ratios of Trimark vs$.$ the industry. $($for industry use a Capital Multiplier $($EM$)$ of $1\mathrm{.}75).$