Using Stage one of the commerical lending decision tree in the textbook Introduction Schippel determind that dry supply as a wholesaler would likely show certain financial characteristics when she began to analyze the financial statements. What are some examples of these characteristics within the ratios for 20xx through 20xz

Figure 8.5 Ratio Summary: Dry Supply	12/31/20xx	12/31/20xy	12/31/20xz
Liquidity Current Ratio Quick Ratio Working Capital	1.3x 0.8x $47,000	1.5x 1.0x $66,000	1.5x 1.0x $92,000
Leverage Debt to net worth Tangible leverage Tangible effective leverage	3.3x 3.3x 1.3x	2.7x 2.7x 1.0x	1.9x 1.9x 0.7x
Profitability Gross profit margin Operating profit margin Pretax profit margin Net Profit margin Return-on-assets Return-on-equity	27.9% 2.3% 2.2% 1.0% 8.2% 35.1%	28.8% 3.0% 2.8% 1.5% 10.0% 36.6%	31.3% 5.0% 4.4% 2.5% 14.8% 42.6%
Efficiency Accounts receivable turnover Inventory turnover Accounts payable turnover Sales to total assets	44.5d 41.3d 17.9d 3.4x	44.0d 39.4d 17.9d 3.4x	44.5d 38.8d 17.9d 3.4x
Coverage Tradition cash flow coverage Interest Coverage Fixed charge coverage Dividend payout ratio	n/a 4.3x 4.5x 0.0%	n/a 4.7x 4.7x 0.0%	n/a 4.6x 4.3x 0.0%

Figure 8.6 Wholesale Dry-Cleaning Equipment Industry Quartiles 20xz
Ration	Higher	Median	Lower
Current Quick Tangible Leverage Pretax profit margin Return-on-assets Interest coverage	2.4x 1.2x 0.9x n/a 10.7x 5.5x	1.5x 0.8x 2.5x 2.1x 3.2x 2.1x	1.2x 0.5x 5.1x n/a (0.3x) 1.0x