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Problem 1 4 - 1 5 ( Algo ) Comprehensive Ratio Analysis [ LO 1 4 - 2 , LO 1 4 - 3 ,

Problem 14-15(Algo) Comprehensive Ratio Analysis [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6]
[The following information applies to the questions displayed below.]
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked
you to perform a comprehensive analysis of the company's financial statements, including comparing Lydex's performance
to its major competitors. The company's financial statements for the last two years are as follows:
Problem 14-15 Part 1(Algo)
Required:
You decide first to assess the company's performance in terms of debt management and profitability. Compute the following for both
this year and last year: (Round your "Percentage" answers to 1 decimal place and other answers to 2 decimal places.)
a. The times interest earned ratio.
b. The debt-to-equity ratio.
c. The gross margin percentage.
d. The return on total assets. (Total assets at the beginning of last year were $13,070,000.)
e. The return on equity. (Stockholders' equity at the beginning of last year totaled $7,990,250. There has been no change in common
stock over the last two years.)
. Is the company's financial leverage positive or negative?
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