Harley-Davidson, inc. (HOG), is a leading motorcycle manufacturer in the United States. The company manufactures and sells a number of different types of motorcycles, a complete line of motorcycle parts, and brand-related accessories, clothing, and collectibles. The following information is available for three recent years (in millions except per-share amounts):

1. Calculate the following ratios for each year. Round to one decimal place except dollar amounts, which should be rounded to the nearest cent.

a. Return on total assets

b. Return on stockholders’ equity

c. Earnings per share

d. Dividend yield

e. Price-earnings ratio using the average price per share of stock.

2. What is the average debt ratio and the ratio of liabilities to stockholders’ equity for Years 1, 2, and 3?

3. Comment on the results in (1) and (2).

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Year 3 Year 2 Year 1 Net income (loss) $ 523 $ 692 $ 752 Preferred dividends None None None Interest expense $ 31 $ 30 $ 12 Shares outstanding for computing earnings per share Cash dividend per share 173 181 204 $ 1.46 $ 1.40 $9,932 $ 1.24 $9,760 Average total assets Average stockholders' equity Average stock price per share $9,931 $1,882 $1,880 $2,374 $50.88 $58.34 $45.39