Ratio Calculations
		2015		2014		2013		Formula Used (Write out formulas)
Liquidity Ratios
Current Ratio		0.96945		0.88233		0.84622		Current assets/Current liabilities
Quick Ratio		0.28		0.24		0.22		(Current assets - Inventory)/Current liabilities
Activity Ratios
Inventory Turnover		8.11311		8.06035		7.96563		COGS/Average Inventory
Accounts Recievables Turnover		72.1889		72.1548		72.8291		Net sales/Average accounts recievable
Total Asset Turnover		2.37798		2.34078		2.35017		Net sales/Average total assets
Average Collection Period		5.06		5.06		5.01		(Average account receiveable/Net sales) (365)
Financing Ratios
Debt Ratio		0.60043		0.62029		0.67293		Total debt/Total assets
Debt-to-Equity Ratio		1.50272		1.63359		2.05741		Total liabilities/Total shareholders' equity
Times Interest Earned Ratio		10.985		11.4574		15.6145		EBIT/Total interst expense
Market Ratios
Earnings per Share (EPS)		1.1645		1.15493		1.58357		Net income/Number of shares
Price Earnings (PE)		8.59		7.79		5.37		MPS/EPS
Profitability Ratios
Return on Equity (ROE)		20%		20.80%		33.50%		Net income/Shareholders' equity
Return on Assets (ROA)		8%		7.90%		11%		Net income/Average assets
Net Profit Margin		3.40%		3.40%		4.70%		Net income/Sales
Operating Profit Margin		5.60%		5.60%		7.30%		Operating profits/Sales

Please refer to the financial ratios above.

In this part of your assessment, you will compose an analytical study reporting your results from Part 1. The CEO of your company is forming a task force to review the financials and present a review for the acquisition of ABC Company. Based on ABC's previous 3 years of financials, determine if this would be a good acquisition. You must form the task force to complete the task.

The CEO would like most of the departments to participate in the process. Using each department's area of expertise, what information would each of the following departments contribute to the final decision? Provide a minimum one-paragraph response for each department.

• Finance Department
• Sales Department
• Marketing Department
• Human Resources
• Legal Department