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What do these ratios suggest about the companys performance during the two periods presented? Which ratios would a senior operational manager for WGC be most

What do these ratios suggest about the companys performance during the two periods presented?

Which ratios would a senior operational manager for WGC be most interested in following? Why?

Wicked Good Cupcakes
31-Dec-15 31-Dec-16
Profitability Ratios (in %)
Return on equity 19.71% 16.60%
Return on assets 13.54% 9.30%
Return on invested capital 18% 12%
Profit margin 7.89% 6.03%
Gross margin 47% 44%
Turnover-Control Ratios
Asset turnover 1.72 1.54
Fixed-asset turnover 6.5 6.4
Inventory turnover 4.2 4.1
Collection period (days) 3.3 4.03
Days' sales in cash 1,618.14 1,839.02
Payables period 40.39 47.3
Leverage and Liquidity Ratios
Assets to equity 1.46 1.79
Debt to assets 0.07 0.18
Debt to equity 0.1 0.33
Times interest earned 24.24 28.11
Current ratio 3.01 3.07
Acid test 1.03 1.31
Table 1

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