Question:

Based on the results of the financial rations, provide an analysis about Company A's profitability performance during the five years with valid reasons & detailed commentary. See attached image below.

Company A's financial ratios from 2010 to 2014 Years 2012 2010 2011 2013 2014 Ratios Inventory turnover ratio Average days in inventory Receivables turnover ratio Average collection period Asset turnover ratio Asset turnover Period Profit margin on sales Return on assets Return on shareholders' equity Equity multiplier Return on shareholders' equity using the Du Pont framework 4 times 91 days 11 times 34 days 0.48 times 760 days 26% 13% 22% 4 times 94 days 11 times 35 days 0.47 times 777 days 30% 14% 21% 3 times 112 days 11 times 34 days 0.46 times 79 days 29% 46% 19% 41 times 9 days 11 times 34 days 0.46 times 794 days 22% 10 % 14% 5 times 69 days 11 times 34 days 0.45 times 811 days 22% 10% 13% 0.43 22% 1.58 21% 1.50 19% 1.37 14% 1.31 13%