Question: AVAILABLE DATA : SKI and Industry Average SKI Industry Current 1.75 2.25 Debt/Assets 58.76% 50.00% Turnover of cash and securities 16.67 22.22 Days sales outstanding

AVAILABLE DATA : SKI and Industry Average

SKI

Industry

Current

1.75

2.25

Debt/Assets

58.76%

50.00%

Turnover of cash and securities

16.67

22.22

Days sales outstanding (365-day basis)

45.63

32

Inventory turnover

4.82

7

Fixed assets turnover

11.35

12

Total assets turnover

2.08

3

Profit margin

2.07%

3.50%

Return on equity (ROE)

10.45%

21.00%

Answer the following questions:

1. a. Determine the EVA using available data (make reasonable assumptions)

b. Analyze and interpret

c. Examine factors in DuPont equation which could be modified to generate a higher EVA for SKI

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