Question: Please complete the table using Microsoft Financial for the year 2019, 2020 and 2021 Ratio Calculated Values Interpretation 2021 2020 2019 Liquidity Ratios Current Ratio

Please complete the table using Microsoft Financial for the year 2019, 2020 and 2021

Ratio

Calculated Values

Interpretation

2021

2020

2019

Liquidity Ratios

Current Ratio

2.08

2.52

2.53

Quick Ratio

2.05

2.49

2.50

Activity Ratios

Inventory Turnover

19.8 times

24.3 times

20.8 times

Average Collection Period

83 Days

93 Days

Average Payment Period

Asset Turnover

0.5 Times

0.47 Times

0.44 Times

Debt Ratios

Debt Ratio

57%

61%

64%

Debt-to-equity ratio

2.31

2.27

2.35

Times interest earned ratio

Profitability Ratios

Gross profit margin

68.9%

67.8%

65.9%

Operating Profit Margin

41.6%

37%

34%

Net profit margin

36%

31%

31%

Earnings Per Share

Return on total assets

18.4%

15%

13.7%

Return on common equity

74%

55%

50%

Market Ratios

Price Earnings (P/E) Ratio

Market/Book Ratio

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