Income Statement
Firm	Marathon	Marathon
year	2003	2003
	$	CS
Revenues	$523,964,000,000	100%
Cost of Revenues	$394,605,000,000	75.31%
Gross Profit	$129,359,000,000	24.69%
Ops. Inc.	$20,568,000,000	3.93%
Net Income	$14,881,000,000	2.84%
Rating

Liquidity:	Marathon
Current Ratio	79.45%
Cash Ratio	13.17%
Cash Flow from Operations Ratio	33.47%
Ratings

Activity	Marathon
Inventory Turnover	8.649
Avg. # of Days Inventory	43.19
Receivables Turnover	84.38
Working Capital Turnover	-69.05
Fixed Assets Turnover	4.39
Total Assets Turnover	2.29
Length of Operating Cycle	43.21
Ratings

Profit	Marathon
Gross Margin	24.69%
Return on Sales	2.84%
ROA	6.54%
ROE	18.46%
Ratings

ROE = Profit x Activity x Solvency	Marathon
= Net Income/Sales	2.84%
x Sales/Avg. Total Assets	2.29
=Return on Assets= Net Income/Avg. Total Assets	6.53%
x Avg. Total Assets/Avg. Common Equity	2.827
= ROE = NI / Avg. Common Equity	18.46%
Ratings

Determine the Ratings for the above Statements for Marathon Co. in 2003. On a scale of 1-10, 1 representing problems and 10 excellence. Ratings between 1-2 are red flags and 9-10 are green flags. Explain why you chose that rating.