Evaluate the current situation at Premier Furniture using ratio analysis for Designers and Walcott. Discuss the ratios given. Specifically, we need a ratio analysis for Designers and Walcott.

It's in the companys interest to know the difference between a good customer and a bad risk.

Designer's Ratio Analysis
Ratios		31 Jan.1982	31 Jan.1983	31 Jan. 1984
Liquidity Ratios
Current Ratio	Current Assets / Current Liabilities	2.4	2.28	2.7
Quick Ratio	(Current Assets - Inventory)/ Current Liabilities	1.07	1.08	1.29
Asset management / Activity ratios
Total assets turnover ratio	Net Sales / totat assets	2.16	1.62	1.53
Fixed assets turnover ratio	Net sales / net fixed assets	9.12	7.76	7.02
Days sales outstanding (DSO)	Receivables / (annual net sales/365)	47.6	68.12	70.97
Inventory turnover	(COGS) / Inventories	3.54	2.82	2.82
Average sales per day	Annual Net Sales / 365	29.1	22.97	22.68
Debt management / Leverage ratios
Debt to assets ratio	Total debt / Total assets	0.6	0.68	0.69
Liabilities to assets ratio	Total liabilities / total assets	0.7	0.8	0.78
Debt to equity ratio	Total debt / Total common equity	4	6.75	6.21
Times-interest-earned (TIE) ratio	EBIT / Interest expense (not reported)	NA	NA	NA
Average purchase per day	COGS / 365	17.7	14.04	14.12
Days payable	Accounts payable / (COGS / 365)	48.87	61.96	65.49
Profitability ratios
Profit margin	Net income / Net sales	0.04	0	0
Operating profit	EBIT/ Net Sales	0.06	0.02	0.02
Basic earning power (BEP)	EBIT/ Total assets	0.12	0.03	0.03
ROA	Net income / total assets	0.09	0	0
ROE	Net income / common equity	0.61	-0.01	-0.04

	Walcott's Ratio Analysis
Ratios		31 Jan.1983	31 Jan. 1984
Liquidity Ratios
Current Ratio	Current Assets / Current Liabilities	1.39	1.46
Quick Ratio	(Current Assets - Inventory)/ Current Liabilities	0.75	0.81
Asset management / Activity ratios
Total assets turnover ratio	Net Sales / totat assets	1.65	1.62
Fixed assets turnover ratio	Net Sales / net fixed assets	19.38	20.19
Days sales outstanding (DSO)	Receivables / (annual net sales/365)	70.7	72.37
Inventory turnover	(COGS) / Inventories	3.32	3.73
Average sales per day	Annual net sales / 365	77.79	73.3
Debt management / Leverage ratios
Debt to assets ratio	Total debt / Total assets	0.31	0.26
Liabilities to assets ratio	Total liabilities / total assets	0.48	0.46
Debt to equity ratio	Total debt / Total common equity	0.6	0.48
Times-interest-earned (TIE) ratio	EBIT / Interest expense (not reported_)	NA	NA
Average purchase per day	COGS / 365	48.9	50.37
Days payable	Accounts payable / (COGS / 365)	49.89	52.81
Profitability ratios
Profit margin	Net income / Net sales	0.03	0
Operating profit	EBIT/Net Sales	0.05	-0.05
Basic earning power (BEP)	EBIT/ Total assets	0.09	-0.09
ROA	Net income / total assets	0.05	0
ROE	Net income / common equity	0.1	0