RATIOS

2019

2018

2017

Liquidity Ratios

Current ratio (Current asset/current liabilities)

0.853

0.898

0.907

Acid Test Ratio (Curr. asset - Inventory)/ Curr. liab

0.588

0.647

0.607

Cash ratio: Cash and Cash equivalents / Current Liabilities

0.056

0.171

0.190

Profitability Ratios

Gross margin ratio: Gross profit /Sales

0.45

0.43

0.41

Operating margin ratio Operating income / Sales

0.25

0.23

0.23

Net profit Margin ratio

0.16

0.16

0.14

Return on assets ratio: Net income / Total assets

0.24

0.26

0.23

Return on equity ratio: Net income / Shareholder's equity

1.00

0.86

0.75

Leverage Ratios

Debt ratio: Total liabilities / Total assets

0.764

0.691

0.694

Debt to equity ratio: Total liabilities / Shareholder's equity

3.24

2.23

2.27

Interest coverage ratio: Operating income / Interest expenses

31.79

23.26

3.69

Debt service coverage ratio: Operating income / Total debt service

7.23

12.06

1.87

Efficiency Ratios

Asset turnover ratio: Net sales / Average total assets

1.60

1.72

1.66

Inventory turnover ratio: Cost of goods sold / Average inventory

5.53

6.48

5.99

Days sales in inventory ratio: 365 days / Inventory turnover ratio

66.03

56.34

60.91

Market Value Ratios

Earnings Per share: Profit for the year/no of shares

57.63

54.26

42.55

Dividend per share

63.50

47.50

25.00

Book value per share ratio: (Shareholder's equity - Preferred equity) / Total common shares outstanding

57.47

63.36

56.62

Dividend payout ratio (Dividend Paid/Net Income)

1.10

0.88

0.59

Please to evaluate and comment on any interesting trends you find IN THE ABOVE ratios.

What ratios have changed significantly over the past three years?

What does this indicate? Do the ratios suggest financial strength?

What potential weaknesses do you see?

What could the company do to improve these ratios?

Kindly help to conclude with a recommendation, based on your analysis, as to whether the company is prepared to take on a large growth opportunity.

Thanks