S 17-17 (Static) Ratio interpretation LO P3 For each ratio listed, identify whether the change in ratio value from the Prior Year to the Current Year is usually regarded as favorable or unfavorable. Ratio Current Year Prior Year Change 1. Profit margin 9% 8% 2. Debt ratio 47 % 42 % 3. Gross margin 34 % 46 % 4. Acid-test ratio 1.00 1.15 5. Accounts receivable turnover 5.5 6.7 6. Basic earnings per share $ 1.25 $ 1.10 7. Inventory turnover 8. Dividend yield 3.6 3.4 2.0 % 1.2 %