Using the financial ratios provided in the Appendix and the financial statement information for Avon Products below,

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Using the financial ratios provided in the Appendix and the financial statement information for Avon Products below, calculate the following ratios for Avon for both 2009 and 2010:
a. Gross profit margin
b. Operating profit margin
c. Net profit margin.
d. Times interest earned coverage
e. Return on shareholders' equity
f. Return on assets
g. Debt-to-equity ratio
h. Days of inventory
i. Inventory turnover ratio
j. Average collection period
Based on these ratios, did the Avon's financial performance improve, weaken, or remain about the same from 2009 to 2010?
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally.    Inventory Turnover Ratio FormulaWhere,...
Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...
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Crafting and Executing Strategy The Quest for Competitive Advantage

ISBN: 978-0078029509

19th edition

Authors: Arthur Thompson, Margaret Peteraf, John Gamble, A. J. Strickland III

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