FINANCIAL RATIOS: Interpret the answers for the years 2017, 2018, and 2019.

Calculation of Ratios: Gross Profit Ratio = Gross Profit Sales x 100 Gross profit for 2017= 62.11%; Gross profit for 2018= 61.90%; Gross profit for 2019= 60.77% Net Profit Ratio = Net Profit Sales x 100 Net profit for 2017 = 7.97%; Net profit for 2018 = 22.03%; Net profit for 2019 = 21.58% Operating Ratio = Operating Expenses / Sales x 100 Operating ratio for 2017 = 74.16%; Operating ratio for 2018 = 70.17%; Operating ratio for 2019 = 71.71% Current Ratio = Current asset Current liabilities Current ratio for 2017 = 0.55; Current ratio for 2018 = 0.40; Current ratio for 2019 = 0.32 Acid Test Ratio = Current asset - Inventory / Current liabilities Acid test ratio for 2017 = 0.46; Acid test ratio for 2018 = 0.35; Acid test ratio for 2019 = 0.27 inventory Turnover Ratio = Cost of Goods Sold Average Inventory Inventory turnover ratio for 2017 = 2.29 times; Inventory turnover ratio for 2018 = 4.25 times; Inventory turnover ratio for 2019 = 4.33 times Receivables Turnover Ratio = Net Sales Average Accounts Receivable Receivables turnover ratio for 2017 = 4.72 times; Receivables turnover ratio for 2018 = 9.31 times; Receivables turnover ratio for 2019 = 9.38 times Average Collection Period = 365 days / Receivable turnover ratio Average Collection Period for 2017 = 77.33 days; Average Collection Period for 2018 = 39.21 days; Average Collection Period for 2019 = 38.91 days Working Capital Turnover Ratio = Sales / Working Capital Working Capital = Current asset - Current Liabilities Working Capital Turnover Ratio for 2017 = 1.21; Working Capital Turnover Ratio for 2018 = 0.93; Working Capital Turnover Ratio for 2019 = 0.88 Fixed Asset Turnover Ratio = Sales Average Fixed Assets Fixed Asset Turnover Ratio for 2017 = 0.71 times; Fixed Asset Turnover Ratio for 2018 = 0.59 times; Fixed Asset Turnover Ratio for 2019 = 0.56 times Debt to Equity Ratio = Total liabilities/Shareholders Equity Debt to Equity Ratio for 2017 = 48.94; Debt to Equity Ratio for 2018 = 46.28; Debt to Equity Ratio for 2019 = 48.08 Equity Ratio = Shareholders Equity / Total Assets Equity Ratio for 2017 = 1760 / 87,896 = 0.02 Equity Ratio for 2018 = 1760 / 83,216 = 0.02 Equity Ratio for 2019 = 1760 / 86,381 = 0.02