100% + Note: E denotes the estimated forecast Ratio Analysis Industry Ratio Profit margin Operating profit margin Basic earning power ROA ROE Inventory turnover Days sales outstanding Fixed assets turnover Total assets turnover Current Quick Debt ratio Debt-to-equity ratio Liabilities-to-assets ratio Earnings multiplier TIE EBITDA coverage Price/earnings (P/E) Market/book " 2019 4.4% 2020E Average 7.2% 7.7% 10.4% 9.4% 15.6% 5.4% 10.8% 9.1% 15.4% 6.2 9.0 31.6 1.7 67 28.0 3.0 1.224 1.5 50 1.6 2.5 0.7 1.4 27.6% 15.0% 0.46 40.6% 0.22 30.0% 1.7 1.5 4.3 13.0 6.3 17.2 11.4 16.8 1.8 1.0 2.6 Note: "E" denotes the "estimated forecast." a. Why are ratios useful? What three groups use ratio analysis and for what reasons? b. Calculate the projected profit margin, operating profit margin, basic earning power (BEP), return on assets (ROA), and return on equity (ROE). What can you say about these ratios? c. Calculate the projected inventory turnover, days sales outstanding (DSO), fixed as- sets turnover, and total assets turnover. How does Computron's utilization of assets stack up against that of other firms in its industry?