$.$ You will calcul@te several ratios for Twisted Company and then analyze the financial r@tio d@t@ to point out strengths or weaknesses of the company.

$2.$ Twisted Comp@ny $0$wns & oper@tes @ sm@ll ch@in of pretzel st@nds located ne@r colleges & universities. It has experienced significant growth in recent years. The following d@t@ @re @vailable:

$1)$ Pr$0$fit@bility R@ti$0$s

$$ Refer to the inc$0$m$3$ st@tements & consolid@ted b@lance sheets @bove for

Twisted Comp@ny$.$

$$ Compute the following profit@bility r@tios for Twisted Comp@ny for $2019$ and

$2018$:

A$.$ Gr$0$ss Profit Percentage M@rgin

B$.$ Operating Pr$0$fit M@rgin

C$.$ Net Profit M@rgin Percent@ge

D$.$ Return $0$n @ssets

E$.$ Return $0$n Equity

$2.$ Comp@ny$$s Profit@bility

$$ What does the ratio d@t@ suggest about the comp@ny$$s profit@bility @fter

comp@ring $2019$ to $2018?$

$3.$ Lever@ge R@tios

$$ Refer to the s@me income st@tements & consolidated b@lance sheets @bove for

Twisted Comp@ny$.$

$$ Compute the following lever@ge r@tios for Twisted Comp@ny for $2019$ and $2018$:

A$.$ Debt$-$to$-$Equity R@tio

B$.$ Interest Coverage R@tio

$4.$ Security of Creditors

$$ Discuss whether creditors @re @s secure in $2019$ @s they were in $2018$ based on

the r@tio d@t@$.$

$5.$ Efficiency R@tios

$$ Refer to the s@me income st@tements & consolidated b@lance sheets @bove for

Twisted Company.

$$ Compute the following efficiency ratios for Twisted Company for $2019$ and $2018$:

A$.$ D@ys Sales $0$utst@nding

B$.$ Invent$0$ry Turn$0$ver

C$.$ T$0$tal @sset Turn$0$ver

$6.$ Change in Efficiency

$$ What does the r@tio d@t@ suggest @bout the company$$s ch@nge in efficiency?Twisted Company

Consolidated Income Statements

$($in thousands$)$

Year ended December $31,$

$\backslash$table$[[2019,2018,2017],[$$$51,638,$$$41,310,$$$34,425$