(Industry) Kingston, 2018 Kingston, 2019

i. Gross Profit Margin (50%) 48.9% 48.9%

ii. Operating Profit Margin (15%) 15.1% 13.3%

iii. Net Profit Margin (8%) 10.6% 9.3%

iv. Return on Assets (10%) 14.5% 12.5%

v. Return on Equity (20%) 24.1% 20.3%

vi. Current Ratio (1.5) 1.63 1.62

vii. Quick Ratio (1.0) 1.00 1.04

viii. Debt to Total Asset (0.5) .4 .39

ix. Times Interest Earned (25) 15.5X 14.6X

x. Average Collection Period (45 days) 53.5days 61.6days

xi. Inventory Turnover (8) 8.18X 8.62X

xii. Total Asset Turnover (1.6) 1.4X 1.3X

Discuss the financial strengths and weaknesses of Kingston based on the ratios provided here.

Comment on whether a lender would be willing to extend a new loan to this company. Please distinguish between the concerns of a lender considering short-term financing versus providing long term loans to a company. Please specify which ratios would be of most interest to each lender.