you will compose an analytical study to assist the CEO of your company to determine if ABC Company, a technology company dealing with software and hardware, would be a good investment as an acquisition.

After you have provided their input on the effect the acquisition will have on their department, perform an overall analysis to explain your recommendation to the CEO. Your analysis should include the following:

• Explain how the company is trending based on the year-over-year ratios.
• Compare the company to the industry average in Appendix A in the Excel workbook in areas of profitability, management effectiveness, and efficiency.
• Based on the above, summarize the pros and cons of ABC Company using both the year-over-year ratio analysis from Part 1 and the industry average comparisons from Part 3.
• Provide your final recommendation as to whether or not the CEO should invest in ABC Company

		2015	2014	2013	Appendix A
Liquidity Ratios
Current Ratio		0.96945	0.88233	0.84622	3-Year Averages
Quick Ratio		0.28	0.24	0.22
					Profitability
Activity Ratios					Gross Margin	66.15%
Inventory Turnover		8.11311	8.06035	7.96563	Operating Profit Margin	12.04%
Accounts Recievables Turnover		72.1889	72.1548	72.8291	Net Profit Margin	6.01%
Total Asset Turnover		2.37798	2.34078	2.35017	Earnings per Share	1.49
Average Collection Period		5.06	5.06	5.01
					Management Effectiveness
Financing Ratios					Return on Equity	12.40%
Debt Ratio		0.60043	0.602029	0.67293	Return on Assets	5.61%
Debt-to-Equity Ratio		1.50272	1.63359	2.05741	Return on Investment	14.42
Times Interest Earned Ratio		10.985	11.4574	15.6145	Quick Ratio	2.87
					Current Ratio	2.57
Market Ratios					Debt-to-Equity	61.01%
Earnings per Share (EPS)		1.1645	1.15493	1.58357	Total Debt to Equity	57.08%
Price Earnings (PE)		8.59	7.79	5.37
					Efficiency
Profitability Ratios					Total Asset Turnover	0.55
Return on Equity (ROE)		0.2	0.208	0.335	Inventory Turnover	44.98
Return on Assets (ROA)		0.08	0.079	0.11	Accounts Receivable Turnover	8.21
Net Profit Margin		0.034	0.034	0.047
Operating Profit Margin		0.056	0.056	0.073