Question 3 (16 points) The following ratios have been calculated for Advanced Chip Technologies. Analyze the capital structure, long and short term solvency, liquidity, activity and profitability of Advanced Chip Technologies. (8 marks) What are your observations of their operating strategies as a result of your analysis. (8 marks) Grades will not be awarded for descriptive comments. For example, no grades will be assigned for simply stating that the debt ratio increased. Estimated time: 16 mins Dec-15 Dec 16 Dec 17 Dec 18 0.60% 0.70% -2.10% 32.90% 3.20% -3.70% 22.1% 23.9% 49.8% 55.0% 45.2% 49.2% 21.90% 22.60% 34.20% 43.40% 34.80% 32% 20.20%6 20.60% 28.50% 48.80% 41.60% 35.60% 0.3x 0.0x 4.3% 9.2x 0.8X 1.3X 4.7x 17.9X IX 24X 3x 22.6% 0.8X 3x 2.9% 15.9x PROFITABILITY Return on Assets% Return on Capital% Return on Equity% Gross Margin % Operating Margin% NPM% ACTIVITY Total Asset Turnover Fixed Asset Turnover Receivable Turnover Inventory Turnover LIQUIDITY Current Ratio Quick Ratio Avg.Days Sales Outstanding Avg.Days Inventories Outsti Avg.Days Payables Outstand Avg.Cash Conversion Cycle LEVERAGE Total Debt/Equity Total Debt/Capital LT Debt/Equity LT Debt/Capital Total Liab/Total Assets Interest Coverage 0.5X 0.3% 84.6 39.6 63.8 60.4 8.1X 5.7x 77.2 20.4 40.0 57.5 11.8X 10.3X 120.0 16.2 10.0 126.2 39.5X 36.8% 124.5 23.0 6.3 141.2 45.3% 27.3% NA NA 47.0% 0.7% 1.7% 1.6% 1.7% 1.6% 5.6% 31.1X 3.1% 3.0% 1.1% 1.15 5.8% NA 0.0% 0.0% NA NA 17% NA