report on liquidity, profitability, growth, solvency, Leverage and operational performance of National Company. Comment on overall financial position and financial health of the business. Identify problems and recommend possible solutions, if historical ratios of company are:

Ratios

2017

2018

2019

Current Ratio

1.4

1.5

1.6

Acid Test Ratio

0.85

0.74

0.63

Asset Turnover Ratio

4 times

3.2

2.5

Inventory Turnover Ratio

6 times

5.5

5

Collection Period

6 times

5.5

5

Account payable turnover

8 times

10 times

12 times

Total Debt to equity Ratio

1.38

1.61

1.91

Interest cover

5

4

3.5

Gross Profit Ratio

20%

22%

23%

Net Profit Margin

8.5%

6.7%

3.8%

Return on Equity

20%

21%

24%

Sales Growth Rate

8%

5%

2%

P/E Ratio

10

9

8

Fixed Asset Utilization Ratio

2

1.7

1.4