Question: . Based on changes over time and a comparison with industry norms, evaluate the firm's strengths and weaknesses in terms of its financial position. I.

. Based on changes over time and a comparison with industry norms, evaluate the firm's strengths and weaknesses in terms of its financial position.

I. Short-term solvency, or liquidity, ratios

Current ratio

0.75

Quick ratio

0.38

Cash ratio

0.12

II. Long-term solvency, or financial leverage, ratios

Total debt ratio

0.80

Debt-equity ratio

4.11

Equity multiplier

5.11

Times interest earned ratio

8.35

Cash coverage ratio

29.28

III. Asset utilization, or turnover, ratios

Inventory turnover

5.51

Days' sales in inventory

66.22

Receivable turnover

12.51

Days' sales in receivables

29.18

Total asset turnover

1.02

Capital intensity

0.98

IV. Profitability ratios

Proof margin

7.07%

Return on assets

7.18%

Return on equity

36.73%

ROE

36.73%

V. Market values ratios

Price earning ratio

Market to book ratio

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