Question: Ratio Formula Calculation Industry Average Comment Times-interest-earned 6.0 Operating margin 10.0% Profit margin 5.0% Return on total assets 9.0% Return on common equity 15.0% Return

Ratio Formula Calculation Industry Average Comment Times-interest-earned 6.0 Operating margin 10.0%

Profit margin 5.0% Return on total assets 9.0% Return on common equity

Ratio Formula Calculation Industry Average Comment Times-interest-earned 6.0 Operating margin 10.0% Profit margin 5.0% Return on total assets 9.0% Return on common equity 15.0% Return on invested capital 10.8% Basic earning power 18.0% Financial Ratios (14 items x 10 points) Compute the following financial ratios and interpret the results (Low, High, OK) based on the given industry averages. Write your answers or spaces provided. Ratio Formula Calculation Industry Average Commer Current 4.2 Quick 2.2 Inventory turnover 10.9 Days sales outstanding 36 days Fixed assets turnover 2.8 Total assets turnover 1.8 Total debt to total capital 36.4% Ratio Formula Calculation Industry Average Comment Times-interest-earned 6.0 Operating margin 10.0% Profit margin 5.0% Return on total assets 9.0% Return on common equity 15.0% Return on invested capital 10.8% Basic earning power 18.0% Financial Ratios (14 items x 10 points) Compute the following financial ratios and interpret the results (Low, High, OK) based on the given industry averages. Write your answers or spaces provided. Ratio Formula Calculation Industry Average Commer Current 4.2 Quick 2.2 Inventory turnover 10.9 Days sales outstanding 36 days Fixed assets turnover 2.8 Total assets turnover 1.8 Total debt to total capital 36.4%

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