You are a York College graduate and an employee of one of the Big $4$ Accounting firms. You are a member of a team assembled to review and access the operational efficiency, solvency, and profitability of Toro Company, a manufacturer of lawn movers, snow blowers, and irrigational systems supplies. The company's board of directors need this assessment of the company managements' performance. You were given the below selected financial information:

TORO COMPANY Selected Financial Statement

Consolidated Income Statement $-$ USD $($$$)$ $ in Millions $12$ Months Ended

Oct. $31,2023$ Oct. $31,2022$ Oct. $31,2021$

Net Revenue $$4,553$ $$4,515$ $$3,960$

Cost of sales $$2,976$ $$3,010$ $$2,621$

Operating earnings $$431$ $$576$ $$518$

Interest expense $$59$ $$36$ $$29$

Net Profit $$330$ $$443$ $$410$

Consolidated Balance Sheets $-$ USD $($$$)$ $ in Millions Oct. $31,2023$ Oct. $31,2022$ Oct. $31,2021$

Inventories, net $$1,088$ $$1,051$ $$738$

Total current assets $$1,799$ $$1,675$ $$1,489$

Total assets $$3,644$ $$3,556$ $$2,936$

Total current liabilities $$949$ $$1,064$ $$937$

Total liabilities $$2,133$ $$2,204$ $$1,785$

Total stockholders' equity $$1,511$ $$1,352$ $$1,151$

Requirement: In a letter addressed to the Board of Directors please provide an analysis of the following:

A$.$ The Inventory Turnover, in Times, and Days, for FY $2023$ vs$.$ FY $2022.$ Please show your calculations for full points. Was the company efficient in generating revenue from the sale of its inventories? Please provide $2$ recommendations for improvement, if any. $(20\%).$

B$.$ Please calculate the Debt Ratio for FY $2023$ vs$.$ FY $2022?$ Please show your calculations for full points. What is the probability of lending agencies approving loan requests from the company? Please explain in detail $(20\%).$

C$.$ Please calculate the DuPont Return on Assets for FY $2023$ vs$.$ FY $2022.$ Please show your calculations for full points. Did the company's management created value for shareholders and investors? Please include in your answer the trends in the Net Profit Margin and Total Asset Turnover $(20\%)$

D$.$ You should base your conclusion ONLY on the analysis of the calculations in A$,$ B$,$ and C$.$ Should the board of directors retain or change the company's manangement? Please be detailed. $(10\%)$