A clothing retailer has the following statistical information calculated from its financial statements for the past three years:

Using the information above, answer each of the following questions and explain your answer.
a. Are current assets increasing or decreasing in relation to current liabilities?
b. Is the retailer becoming more or less efficient in the collection of its accounts receivable?
c. Over the three-year period, has more or less money been tied up in inventory?
d. From the shareholders' point of view, is profitability improving or not improving?
e. Suppose the retailer needs to borrow capital through long-term debt. Would it be easier to find a lender now, or would it have been easier three years earlier?
f. Has the retailer been using leverage to the advantage of the shareholders over the three-year period?

2014 1.3:1 20.2 times 28 times 2015 2013 1.4:1 30 times 23 times 49% 8.5% Current ratio Accounts receivable turnover Inventory turnover Debt ratio 1.1:1 18 times 35 times 58% 64% 10% Return on shareholders' equity Annual sales revenue 9.5% $8,754,000 $8,810,000 $8,792,000