Lamar Swimwear had the following financial statements for 201X (last year):

Income Statement: (in thousands)

Net Sales $ 1,200,000

Cost of products Sold 800,000

Gross Profit from operations 400,000

Other Expenses 239,900

EBIT 160,100

Interest 35,000

EBT 125,100

Taxes 36,900

Earnings 88,200

Additional information:

Common Shares Outstanding 30,000

Earnings per share $2.94

Lease payment $15,000 per year included in expenses

Balance Sheet

Cash $ 30,000 Accounts Payable $ 200,000

Marketable securities 20,000 Accrued Expenses 20,400

Accounts receivable 170,000 Current Liabilities 220,400

Inventory 230,000 Long-Term Liabilities 325,000

Current Assets 450,000 Total Liabilities 545,400

Fixed Assets 650,000 Common equity 554,600

Total Assets 1,100,000 Total liabilities and Equity 1,100,000

Given the following Industry Ratios perform a ratio analysis of Lamar.

Include comments and suggestions based on your findings.

Be sure to include the DuPont Ratio in your analysis.

Current Ratio 1.96x

Quick Ratio 1.37x

Inventory Turnover 4.24x

Days Sales Outstanding 39.90 days

Fixed Asset Turnover 1.60x

Total Asset Turnover 1.05x

Return on Assets 7.94%

Return on Equity 14.31%

Debt ratio 43.47%

Times Interest Earned 6.50x

Fixed charge coverage 4.70x

Profit margin on sales 7.71%