I need help answering this question:

Based on the analyses completed above, evaluate Geminis financial health How well has the company been performing? What concerns, if any, do you have about the firm? What recommendations would you make?

Sales Cost of Goods Sold Gross Profit Operating Costs Selling and Distribution R&D Administration Amortization Operating Profit Interest Earnings Before Taxes Taxes Net Income 2008 12,175,476,500 7,886,796,000 4,288,680,500 934,532,230 476,350,230 999,453,230 288,216,088 1,590,128,722 277,686,944 1,312,441,778 459,354,622 853,087,156 2009 3,664,714,160 8,974,149,576 4,690,564,584 1,001,234,530 785,774,340 980,340,500 394,440,051 1,528,775,163 329,923,700 1,198,851,462 419,598,012 779,253,450 Cash A/R Parts Inventory WIP Inventory Finished Goods Inventory Total Current Assets L,P,&E, Net Intangibles Total Assets A/P Current Portion of LT Debl Total Current Liabilities Long-term Debt Shareholders' Equity Total Liabilities and Equiti 2008 2009 1,366,526,361 1,413,474,400 1,328,523,975 1,503,560,340 1,062,819,180 1,201,345,530 75,640,210 89,575,400 1,605,660,505 1,805,340,520 5,439,170,231 6,013,296,190 2,281,077,095 3,363,891,508 601,083,781 580,509,006 8,321,331,107 9,957,696,704 1,509,430,300 1,564,430,450 651,847,287 785,532,620 2,161,277,587 2,349,963,070 3,259,236,437 3,927,663,101 2,900,817,082 3,680,070,533 8,321,331,107 9,957,696,704 Asset Management Total asset turnover Inventory turnover Inventory period Fixed asset turnover Average collection period Days payable outstanding Profitability Gross profit margin Net profit margin Return on assets Return on equity Debt Management Debt ratio Times interest earned Equity multiplier Liquidity Current ratio Quick ratio GEMINI ELECTRONICS Summary of Financial Ratios 2008 1.46 4.91 73.29 5.34 39.28 68.90 35.22% 7.01% 10.25% 29.41% 65.14% 5.73 2.87 2.52 1.77 2009 0.37 4.97 72.42 1.09 147.70 62.76 127.99% 21.26% 7.83% 21.17% 63.04% 4.63 2.71 2.56 1.79 Industry Ave. 1.00 1.94 188.33 2.42 30.44 11.11 38% 3.32% 3.32% 6.60% 0.50 3.21 2.84 0.05 Sales Cost of Goods Sold Gross Profit Operating Costs Selling and Distribution R&D Administration Amortization Operating Profit Interest Earnings Before Taxes Taxes Net Income GEMINI ELECTRONICS COMMON SIZE INCOME STATEMENT 2007 8,671,715,000 5,032,513,200 3,639,201,800 854,300,000 365,660,340 832,740,300 187,929,165 1,398,571,995 288,898,584 1,109,673,411 388,385,694 721,287,717 2008 100% 12,175,476,500 58% 7,886,796,000 42% 4,288,680,500 10% 4% 10% 2% 16% 3% 13% 4% 8% 934,532,230 476,350,230 999,453,230 288,216,088 1,590,128,722 277,686,944 1,312,441,778 459,354,622 853,087,156 2009 100% 3,664,714,160 65% 8,974,149,576 35% 4,690,564,584 8% 4% 8% 2% 13% 2% 11% 4% 7% 1,001,234,530 785,774,340 980,340,500 394,440,051 1,528,775,163 329,923,700 1,198,851,462 419,598,012 779,253,450 100% 245% 128% 27% 21% 27% 11% 42% 9% 33% 11% 21% Cash A/R Parts Inventory WIP Inventory Finished Goods Inventory Total Current Assets L,P,&E, Net Intangibles Total Assets A/P Current Portion of LT Debt Total Current Liabilities Long-term Debt Shareholders' Equity Total Liabilities and Equities GEMINI ELECTRONICS COMMON SIZE BALANCE SHEET 2007 1,437,227,573 1,201,094,250 960,875,400 66,650,675 1,451,230,215 5,117,078,113 1,317,388,220 561,903,428 6,996,369,761 1,305,530,320 607,184,919 1,912,715,239 3,035,924,595 2,047,729,927 6,996,369,761 2008 21% 1,366,526,361 17% 1,328,523,975 1,062,819,180 75,640,210 1,605,660,505 14% 1% 21% 73% 5,439,170,231 19% 2,281,077,095 8% 601,083,781 100% 8,321,331,107 19% 1,509,430,300 9% 651,847,287 27% 2,161,277,587 43% 3,259,236,437 29% 2,900,817,082 8,321,331,107 100% 2009 16% 1,413,474,400 13% 16% 1,503,560,340 1,201,345,530 89,575,400 1,805,340,520 1% 19% 65% 6,013,296,190 27% 3,363,891,508 7% 580,509,006 100% 9,957,696,704 1,564,430,450 785,532,620 2,349,963,070 18% 8% 26% 39% 3,927,663,101 35% 3,680,070,533 100% 9,957,696,704 14% 15% 12% 1% 18% 60% 34% 6% 100% 16% 8% 24% 39% 37% 100% Sales Cost of Goods Sold Gross Profit Operating Costs Selling and Distribution R&D Administration Amortization Operating Profit Interest Earnings Before Taxes Taxes Net Income 2008 12,175,476,500 7,886,796,000 4,288,680,500 934,532,230 476,350,230 999,453,230 288,216,088 1,590,128,722 277,686,944 1,312,441,778 459,354,622 853,087,156 2009 3,664,714,160 8,974,149,576 4,690,564,584 1,001,234,530 785,774,340 980,340,500 394,440,051 1,528,775,163 329,923,700 1,198,851,462 419,598,012 779,253,450 Cash A/R Parts Inventory WIP Inventory Finished Goods Inventory Total Current Assets L,P,&E, Net Intangibles Total Assets A/P Current Portion of LT Debl Total Current Liabilities Long-term Debt Shareholders' Equity Total Liabilities and Equiti 2008 2009 1,366,526,361 1,413,474,400 1,328,523,975 1,503,560,340 1,062,819,180 1,201,345,530 75,640,210 89,575,400 1,605,660,505 1,805,340,520 5,439,170,231 6,013,296,190 2,281,077,095 3,363,891,508 601,083,781 580,509,006 8,321,331,107 9,957,696,704 1,509,430,300 1,564,430,450 651,847,287 785,532,620 2,161,277,587 2,349,963,070 3,259,236,437 3,927,663,101 2,900,817,082 3,680,070,533 8,321,331,107 9,957,696,704 Asset Management Total asset turnover Inventory turnover Inventory period Fixed asset turnover Average collection period Days payable outstanding Profitability Gross profit margin Net profit margin Return on assets Return on equity Debt Management Debt ratio Times interest earned Equity multiplier Liquidity Current ratio Quick ratio GEMINI ELECTRONICS Summary of Financial Ratios 2008 1.46 4.91 73.29 5.34 39.28 68.90 35.22% 7.01% 10.25% 29.41% 65.14% 5.73 2.87 2.52 1.77 2009 0.37 4.97 72.42 1.09 147.70 62.76 127.99% 21.26% 7.83% 21.17% 63.04% 4.63 2.71 2.56 1.79 Industry Ave. 1.00 1.94 188.33 2.42 30.44 11.11 38% 3.32% 3.32% 6.60% 0.50 3.21 2.84 0.05 Sales Cost of Goods Sold Gross Profit Operating Costs Selling and Distribution R&D Administration Amortization Operating Profit Interest Earnings Before Taxes Taxes Net Income GEMINI ELECTRONICS COMMON SIZE INCOME STATEMENT 2007 8,671,715,000 5,032,513,200 3,639,201,800 854,300,000 365,660,340 832,740,300 187,929,165 1,398,571,995 288,898,584 1,109,673,411 388,385,694 721,287,717 2008 100% 12,175,476,500 58% 7,886,796,000 42% 4,288,680,500 10% 4% 10% 2% 16% 3% 13% 4% 8% 934,532,230 476,350,230 999,453,230 288,216,088 1,590,128,722 277,686,944 1,312,441,778 459,354,622 853,087,156 2009 100% 3,664,714,160 65% 8,974,149,576 35% 4,690,564,584 8% 4% 8% 2% 13% 2% 11% 4% 7% 1,001,234,530 785,774,340 980,340,500 394,440,051 1,528,775,163 329,923,700 1,198,851,462 419,598,012 779,253,450 100% 245% 128% 27% 21% 27% 11% 42% 9% 33% 11% 21% Cash A/R Parts Inventory WIP Inventory Finished Goods Inventory Total Current Assets L,P,&E, Net Intangibles Total Assets A/P Current Portion of LT Debt Total Current Liabilities Long-term Debt Shareholders' Equity Total Liabilities and Equities GEMINI ELECTRONICS COMMON SIZE BALANCE SHEET 2007 1,437,227,573 1,201,094,250 960,875,400 66,650,675 1,451,230,215 5,117,078,113 1,317,388,220 561,903,428 6,996,369,761 1,305,530,320 607,184,919 1,912,715,239 3,035,924,595 2,047,729,927 6,996,369,761 2008 21% 1,366,526,361 17% 1,328,523,975 1,062,819,180 75,640,210 1,605,660,505 14% 1% 21% 73% 5,439,170,231 19% 2,281,077,095 8% 601,083,781 100% 8,321,331,107 19% 1,509,430,300 9% 651,847,287 27% 2,161,277,587 43% 3,259,236,437 29% 2,900,817,082 8,321,331,107 100% 2009 16% 1,413,474,400 13% 16% 1,503,560,340 1,201,345,530 89,575,400 1,805,340,520 1% 19% 65% 6,013,296,190 27% 3,363,891,508 7% 580,509,006 100% 9,957,696,704 1,564,430,450 785,532,620 2,349,963,070 18% 8% 26% 39% 3,927,663,101 35% 3,680,070,533 100% 9,957,696,704 14% 15% 12% 1% 18% 60% 34% 6% 100% 16% 8% 24% 39% 37% 100%