QUESTION 7 (11 Marks)

Presented below is selected Financial information for Global Limited:

				Industry
Ratios	2020	2019	2018	Average
Current Ratio	2.72	2.62	2.57	2.48
Acid-Test Ratio	1.78	1.61	1.46	1.42
Inventory Turnover	6.8	7.1	7.3	7.3
Accounts Receivable Turnover	7.4	8.1	8.5	8.6
Days Sale in receivables	49 Days	45 Days	43 Days	42 Days
Debt Ratio	0.63	0.61	0.57	0.58
Times Interest Earned	9.3	9.2	9.4	9.3
Rate of return on Net Sales	8.2%	7.9%	7.7%	7.4%
Rate of return on Total Assets	14.9%	14.7%	14.4%	14.7%
Rate of Return on Common Shares' Equity	19.3%	18.9%	18.4%	17.7%
Earnings per Share	$10.74	$10.45	$10.85	$9.52
Price/Earnings Ratio	8.8	8.4	8.4	8.6
Dividend Yield	3.9%	3.8%	3.6%	4.9%
Book value per share of Common Stock	$55.41	$51.75	$48.25	$62.42
Required:
1. Evaluate Global's Short-term creditor position
2. Provide your comments on Globals ability to pay its long term debt.
3. Evaluate Global's profitability.