After your team has 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:

• 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 the teams final recommendation as to whether or not the CEO should invest in ABC Company.
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Appendix A Technology 3-Year Average for Industry Averages 66.15% Profitability Gross Margin Operating Profit Margin Net Profit Margin 12.04% 6.01% Earnings per Share 1.49 Management Effectiveness Return on Equity 12.40% Return on Assets 5.61% Return on investment 14.42 Quick Ratio 2.87 Current Ratio 2.57 61.01% Debt-to-Equity Total Debt to Equity 57.08% Efficiency Total Asset Turnover 0.55 44.98 Inventory Turnover Accounts Receivable Turnover 8.21 24,418,000 Appendix A Technology 3-Year Average for Industry Averages 66.15% Profitability Gross Margin Operating Profit Margin Net Profit Margin 12.04% 6.01% Earnings per Share 1.49 Management Effectiveness Return on Equity 12.40% Return on Assets 5.61% Return on investment 14.42 Quick Ratio 2.87 Current Ratio 2.57 61.01% Debt-to-Equity Total Debt to Equity 57.08% Efficiency Total Asset Turnover 0.55 44.98 Inventory Turnover Accounts Receivable Turnover 8.21 24,418,000