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Koester, Inc., states in its 2020 10-K filing with the SEC, In October 2020, two major credit rating agencies changed Koesters long-term credit rating outlook

Koester, Inc., states in its 2020 10-K filing with the SEC, In October 2020, two major credit rating agencies changed Koesters long-term credit rating outlook to negative and one of the credit rating agencies reduced Koesters short-term credit rating. Koesters financial statements (in $000) follow.

Koester, Inc. Comparative Income Statement For the Year Ended December 31

2020

2019

2018

Sales revenue

$5,179,016 $5,102,786 $4,960,100

Cost of goods sold

2,806,148 2,692,061 2,530,617

Gross profit

2,372,868 2,410,725 2,429,483

Operating expenses

1,708,339 1,679,908 1,643,773

Operating income

664,529 730,817 785,710

Interest expense, net

42,279 58,081 61,611

Other non-operating (income), net

(29,799) (23,518) (16,755)

Income before income tax

652,049 696,254 740,854

Income tax expense

235,030 123,531 203,222

Net income

$417,019 $572,723 $537,632

Koester, Inc. Comparative Balance Sheet As of December 31

Assets

2020

2019

Cash

$997,734 $1,156,835

Accounts receivable (net)

760,643 759,033

Inventory

376,897 418,633

Prepaid expenses and other current assets

277,226 302,649

Total current assets

2,412,500 2,637,150

Property, plant, & equipment (net)

547,104 586,526

Other assets

1,412,709 1,532,816

Total Assets

$4,372,313 $4,756,492

Liabilities and Stockholders Equity

Short-term borrowings

$117,994 $28,995

Current portion of long-term debt

100,000 189,130

Accounts payable

265,936 349,159

Accrued expenses

796,473 880,038

Income taxes payable

182,782 279,849

Total current liabilities

1,463,185 1,727,171

Long-term debt

525,000 400,000

Other

282,395 243,509

Total noncurrent liabilities

807,395 643,509

Stockholders Equity

Common stock, $1.00 par value

441,369 441,369

Additional paid-in capital

1,589,281 1,594,332

Treasury stock

(935,711) (473,349)

Retained earnings

1,006,794 823,460

Total stockholders equity

2,101,733 2,385,812

Total Liabilities and Stockholders Equity

$4,372,313

$4,756,492

What is the return on assets % for 2022? (rounded to one decimal place)

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