Week 1 - Financial Ratio
Instructions: For each of the ratios, provide a professional opinion on whether the trend is positive for
the company and also compare the performance with the industry average.
				2006		2007		2008
Profitability Ratios
	Total Margin			7.5%		7.6%		7.9%
	Industry Average			7.2%		6.5%		7.1%
	Return on Assets			5.2%		5.5%		5.7%
	Industry Average			5.0%		4.8%		5.2%
	Return on Equity			9.0%		8.8%		8.7%
	Industry Average			8.4%		8.7%		8.7%
Liquidity Ratios
	Current Ratio			2.3		2.1		2.1
	Industry Average			1.9		2.0		1.9
	Days Cash on Hand			24 days		28 days		30 days
	Industry Average			20 days		22 days		24 days
	Average Payment Period			32 days		34 days		33 days
	Industry Average			35 days		35 days		34 days
Debt Management Ratios
	Debt Ratio			35.0%		38.0%		40.0%
	Industry Average			40.0%		42.0%		42.0%
	Debt-to-Equity Ratio			40.0%		44.0%		44.0%
	Industry Average			43.0%		42.0%		42.0%