Triple A Office Mart

Financial Ratio Analysis

1.What are Triple A's earnings per share for year 1991 and 1992, respectively?

2.Calculate some financial ratios for the company for 1990, 1991 and 1992 (INCLUDING ROE, Net profit margin, total asset turnover, financial leverage, current ratio, and number of days of receivables.

3.Comment on the trend of ROE you got in part 2. What are the reasons for the trend of ROE based on the DuPont Analysis?

4. If the typical firm in the industry in which triple A operates has a debt to equity ratio of 42 percent, what advice would you give Triple A concerning its debt ratio? Show your work.