The following information (in thousands) is for Danier Leather Inc.:
___________________2011 2010 2009
Current assets..........$ 59,370......$ 55,241........$ 48,056
Current liabilities.........12,495.........17,905..........10,967
Net sales.................157,621.......164,217.........162,106
Cost of goods sold......71,333.........77,438..........88,589
Profit (loss).................7,638..........7,219..........(2,309)
Instructions
(a) Calculate the gross profit margin, profit margin, and current ratio for Danier Leather for 2011, 2010, and 2009.
(b) Comment on whether the ratios have improved or deteriorated over the three years.
Taking It Further
What other information would be useful when evaluating these ratios over the three year period?