Home Star Corp. is a national chain of retail hardware stores with total assets of $2.5 billion. Selected financial ratios for Home Star are as follows:

Required:
The economic slowdown that started in 2008 was difficult for Home Star. Briefly discuss what these financial ratios indicate about how Home Star was affected by the slowdown. Which measures deteriorated over the period? Which ratios indicate positive action taken by Home Star during the period?

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2008 2.39 58 5,27 .86 9.88 2.16 8 73% 4.19% 16.5% 2010 2.35 2009 2.38 Current ratio Quick ratio Inventory turnover Deht to equity ratio Return on assets Total asset turnover Gross profit margin Net profit margin Return on equity 5.57 68 7,3% 5.33 87 9,0% 2.08 8.36% 3,87% 15.1% 7.7 1 % .28 11.4%