Ratios Calculated

	Year 1	Year 2	Year 3
Price-to-free-cash-flow	5.60	7.28	8.15
Inventory turnover	11.20	13.44	15.05
Debt-to-equity	0.70	0.74	0.89

Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply.

A The market value of Green Caterpillar Garden Supplies Inc.s common shares declined over the three years.

B A plausible reason why Green Caterpillar Garden Supplies Inc.s price to free cash flow ratio has increased is that investors expect higher cash flow per share in the future.

C The companys creditworthiness has improved over these three years as evidenced by the increase in its debt-to-equity ratio over time.

D An improvement in the inventory turnover ratio could likely be explained by the new sales-forecasting strategies that led to better