1 Normal 1 No Spac... Heading 1 Heading Paragraph Please enter your ratio calculations below. Unit 2 Assignment- 2008 2009 2010 Types of Ratios Profitability Ratios Return on equity 18% 7% 5% Return on assets 11.7% 5% 3.6% Profit margin 7% 3% 2.3% Turnover-Control Ratios Asset turnover Fixed-asset turnover Inventory turnover 1.7 5.2 2.2 1.7 5.1 2.3 1.5 5.5 2.4 Leverage and Liquidity Ratios Debt to assets Times interest earned Current ratio 22.1% 45.5 2.4 18.5% 20.6 2.9 18.2% 204.4 2.9 B. Answer the questions below to comment on Men's Wearhouse Inc.'s Turnover Control trends for the last three years. Provide quantitative information to support your answers. 1. To what extent are you impressed or concerned with the trends for Inventory Turnover for the past three years? Also comment on the results given the Inventory Turnover industry norm is 3. 2. Explain an effective plan to continue with positive trends -or- address any concerns given a negative trend. Explain the concept of Economic Order Quantity as it would apply here. C. Comment on Men's Wearhouse, Inc.'s Debt to Assets ratio the indicator of leverage -trends for the last three years. 1. Explain the concept of financial leverage, given the concept of the Debt to Assets ratio, as it applies to the capital structure of Men's Wearhouse, Inc. Include a note to explain why might a.50 Debt to Assets ratio be deemed a benchmark / acceptable / 'leverage ratio. 2. To what extent are you impressed or concerned with the percent of debt financing of Men's Wearhouse, Inc.'s Total Assets if the industry norm is 65%? 3. Comment on the trends and the factors influencing the Times Interest Earned multiple D. Based on your evaluation of the financial ratios and financial reports, decide on a changed company strategy and explain your reasoning