After you have provided their input on the effect the acquisition will have on their department, perform an overall analysis to explain your recommendation to the CEO. Your analysis should include the following:Appendix A

Technology $3-$Year Average for Industry Averages

$\begin{array}{cc}\text{P}\text{r}\text{o}\text{f}\text{i}\text{t}\text{a}\text{b}\text{i}\text{l}\text{i}\text{t}\text{y}& ?\\ \text{G}\text{r}\text{o}\text{s}\text{s}\text{M}\text{a}\text{r}\text{g}\text{i}\text{n}& 66\mathrm{.}15\%\\ \text{O}\text{p}\text{e}\text{r}\text{a}\text{t}\text{i}\text{n}\text{g}\text{P}\text{r}\text{o}\text{f}\text{i}\text{t}\text{M}\text{a}\text{r}\text{g}\text{i}\text{n}& 12\mathrm{.}04\%\\ \text{N}\text{e}\text{t}\text{P}\text{r}\text{o}\text{f}\text{i}\text{t}\text{M}\text{a}\text{r}\text{g}\text{i}\text{n}& 6\mathrm{.}01\%\\ \text{E}\text{a}\text{r}\text{n}\text{i}\text{n}\text{g}\text{s}\text{p}\text{e}\text{r}\text{S}\text{h}\text{a}\text{r}\text{e}& 1\mathrm{.}49\end{array}$

Management Effectiveness

$\begin{array}{cc}\text{R}\text{e}\text{t}\text{u}\text{r}\text{n}on\text{E}\text{q}\text{u}\text{i}\text{t}\text{y}& 12\mathrm{.}40\%\\ \text{R}\text{e}\text{t}\text{u}\text{r}\text{n}on\text{A}\text{s}\text{s}\text{e}\text{t}\text{s}& 5\mathrm{.}61\%\\ \text{R}\text{e}\text{t}\text{u}\text{r}\text{n}on\text{I}\text{n}\text{v}\text{e}\text{s}\text{t}\text{m}\text{e}\text{n}\text{t}& 14\mathrm{.}42\\ \text{Q}\text{u}\text{i}\text{c}\text{k}\text{R}\text{a}\text{t}\text{i}\text{o}& 2\mathrm{.}87\\ \text{C}\text{u}\text{r}\text{r}\text{e}\text{n}\text{t}\text{R}\text{a}\text{t}\text{i}\text{o}& 2\mathrm{.}57\\ \text{D}\text{e}\text{b}\text{t}-to-\text{E}\text{q}\text{u}\text{i}\text{t}\text{y}& 61\mathrm{.}01\%\\ \text{T}\text{o}\text{t}\text{a}\text{l}\text{D}\text{e}\text{b}\text{t}to\text{E}\text{q}\text{u}\text{i}\text{t}\text{y}& 57\mathrm{.}08\%\end{array}$

Efficiency

$\begin{array}{cc}\text{T}\text{o}\text{t}\text{a}\text{l}\text{A}\text{s}\text{s}\text{e}\text{t}\text{T}\text{u}\text{r}\text{n}\text{o}\text{v}\text{e}\text{r}& 0\mathrm{.}55\\ \text{I}\text{n}\text{v}\text{e}\text{n}\text{t}\text{o}\text{r}\text{y}\text{T}\text{u}\text{r}\text{n}\text{o}\text{v}\text{e}\text{r}& 44\mathrm{.}98\\ \text{A}\text{c}\text{c}\text{o}\text{u}\text{n}\text{t}\text{s}\text{R}\text{e}\text{c}\text{e}\text{i}\text{v}\text{a}\text{b}\text{l}\text{e}\text{T}\text{u}\text{r}\text{n}\text{o}\text{v}\text{e}\text{r}& 8\mathrm{.}21\end{array}\backslash$table$[[$A$,,$c$,$D E$,$G$,4$ I$],[$Ratio Calculations$],[,,2015,2014,2013,$Formula Used $($Write out formulas$)],[$Liquidity Ratios$],[$Current Ratio,,$0\mathrm{.}96945,0\mathrm{.}88233,0\mathrm{.}84622,$Current Assets$/$Current Liabilities$],[$Quick Ratio,,$0\mathrm{.}28,0\mathrm{.}24,0\mathrm{.}22,($Current Assets$-$Inventory$)/$Current Liabilities$],[$Activity Ratios$],[$Inventory Turnover,,$8\mathrm{.}11311,8\mathrm{.}06035,7\mathrm{.}96563,$COGS$/$Average Inventory$],[$Accounts Recievables Turnover,,$72\mathrm{.}1889,72\mathrm{.}1548,72\mathrm{.}8291,$Net Sales$/$Average Account Receivable$],[$Total Asset Turnover,,$2\mathrm{.}37798,2\mathrm{.}34078,2\mathrm{.}35017,$Net Sales$/$Average Total Assets$],[$Average Collection Period,,$5\mathrm{.}06,5\mathrm{.}06,5\mathrm{.}01,($Average Accounts Receivable$/$Net Sales$)*365],[$Financing Ratios$],[$Debt Ratio,,$0\mathrm{.}60043,0\mathrm{.}62029,0\mathrm{.}67293,$Total Debt$/$Total Assets$],[$Debt$-$to$-$Equity Ratio,,$1\mathrm{.}58027,1\mathrm{.}63359,2\mathrm{.}0571,$Total Liabilites$/$Total Shareholder's Equity$],[$Times Interest Earned Ratio,,$10\mathrm{.}985,11\mathrm{.}4574,15\mathrm{.}6145,$EBIT$/$Total Interest Expense$],[$Market Ratios$],[$Earnings per Share $($EPS$),,1\mathrm{.}1645,1\mathrm{.}15496,1\mathrm{.}58357,$Net Income$/$Number of Share$],[$Price Earnings $($PE$),,8\mathrm{.}59,7\mathrm{.}79,5\mathrm{.}37,$Share Price$/$Earning per Share$],[$Profitability Ratios$],[$Return on Equity $($ROE$),,20,20\mathrm{.}8,33\mathrm{.}5,$Net Income$/$Shareholder$\text{'}$s Equity$],[$Return on Assets $($ROA$),,8,7\mathrm{.}9,11,$Net Income$/$Average Assets$],[$Net Profit Margin,,$3\mathrm{.}4,3\mathrm{.}4,4\mathrm{.}7,$Net Income$/$Sales$],[$Operating Profit Margin,,$5\mathrm{.}6,5\mathrm{.}6,7\mathrm{.}3,$Operating Profit$/$Sales$],[,,,,,]]$

Explain how the company is trending based on the year$-$over$-$year ratios.

Compare the company to the industry average in Appendix A in the Excel workbook in areas of profitability, management effectiveness, and efficiency.

Based on the above, summarize the pros and cons of ABC Company using both the year$-$over$-$year ratio analysis from Part $1$ and the industry average comparisons from Part $3.$

Provide your final recommendation as to whether or not the CEO should invest in ABC Company.