The following ratio calculations are based on three years of financial statements and are compared to the industry standards. The retail company has had some growth during this period but has found that its profitability is less than satisfactory.

Analyze the Financial Performance in detail of the Company under the following categories:

1. Creditor (Analyze the ratios relevant to creditors)
2. Management (Analyze the ratios relevant to management)

	20XX		20XW		20XV		Industry
Profit margin	4.3	%	4.0	%	3.5	%	4.2	%
Return on assets	5.6	%	4.8	%	3.9	%	6.4	%
Return on equity	11.2	%	9.8	%	7.7	%	13.7	%
Gross margin	43	%	43	%	43	%	40	%
Receivables turnover	7.8		7.93		8.1		7.3
Average collection period	47	days	46	days	45	days	50	days
Inventory turnover	8.1		8.23		8.3		8.3
Capital asset turnover	3.3		3.03		2.7		3.5
Total asset turnover	1.3		1.23		1.1		1.5
Current ratio	2.2		2.3		2.3		2.1
Quick ratio	1.9		2.0		2.0		1.7
Debt to total assets	50	%	50	%	50	%	54	%
Times interest earned	8.1		8.23		8.1		7.2
Fixed charge coverage	5.5		4.53		4.0		5.1