| RATIO ANALYSIS SPREADSHEET | | | | | = Pos,Neu,Neg |
| Company | | Rocky Mountain Chocolate Factory Inc. |
| | | | 2015 | | 2016 | | 2017 | | Industry |
| | | | | | | | | | Average |
| BALANCE SHEET RATIOS: Stability (Staying Power) |
| 1 | Current | | | | | | | | | Ability to meet current obligations |
| | | Current Assets | 17,660,000 | 2.13 | 15,440,000 | 1.93 | 15,150,000 | 1.88 |
| | | Current Liabilities | 8,290,000 | | 8,010,000 | | 8,060,000 |
| 2 | Debt-to-Equity | | | | | | | | | Margin of Safety to Creditors |
| | | Total Liabilities | 14,400,000 | 0.73 | 13,480,000 | 0.73 | 12,370,000 | 0.66 |
| | | Equity | 19,740,000 | | 18,480,000 | | 18,830,000 |
| INCOME STATEMENT RATIOS: Profitability (Earning Power) |
| 3 | Gross Margin | | | | | | | | | Gross Profit expressed as a % of Sales |
| | | Gross Profit | 14,080,000 | 33.9% | 13,170,000 | 32.6% | 12,250,000 | 32.0% |
| | | Sales | 41,510,000 | | 40,460,000 | | 38,300,000 |
| 4 | Operating Profit Margin | | | | | | | | | Operating Profit expressed as a % of Sales |
| | | Operating Profit | 5,960,000 | | 3,710,000 | | 5,520,000 |
| | | Sales | 41,510,000 | 14.4% | 40,460,000 | 9.2% | 38,300,000 | 14.4% |
| 5 | Net Margin | | | | | | | | | Net Profit expressed as a % of Sales |
| | | Net Income | 3,940,000 | 9.5% | 4,430,000 | 10.9% | 3,450,000 | 9.0% |
| | | Sales | 41,510,000 | | 40,460,000 | | 38,300,000 |
| ASSET MANAGEMENT RATIOS: Overall Efficiency Ratios |
| 6 | Earnings Quality | | | | | | | | | Measures cash generated from sales; higher % the better |
| | | Cash flow from Operations | 5,870,000 | 149% | 6,790,000 | 153% | 5,320,000 | 154% |
| | | Net Income | 3,940,000 | | 4,430,000 | | 3,450,000 |
| 7 | Return on Assets | | | | | | | | | Measures the profitability of using the assets |
| | | Net Income | 3,940,000 | - | 4,430,000 | - | 3,450,000 | - |
| | | Total Assets |
| 8 | Return on Equity | | | | | | | | | Measures the profitability of the stockholders investment |
| | | Net Income | 3,940,000 | 20.0% | 4,430,000 | 24.0% | 3,450,000 | 18.3% |
| | | Equity | 19,740,000 | | 18,480,000 | | 18,830,000 |
| ASSET MANAGEMENT RATIOS: Working Capital Cycle Ratios |
| 9 | Inventory Turnover | | | | | | | | | Measures the efficiency of moving the inventory |
| | | Cost of Revenue/Goods Sold | 27,430,000 | 6 | 27,290,000 | 6 | 26,050,000 | 5 |
| | | Inventory | 4,790,000 | | 4,840,000 | | 4,980,000 |
| 10 | Inventory Turn-Days | | | | | | | | | Average # of days it takes to move inventory |
| | | 360 | 360 | 62.87 | 360 | 63.85 | 360 | 68.82 |
| | | Inventory Turnover | 6 | | 6 | | 5 |
| 11 | Accounts Receivable Turnover | | | | | | | | | Measures the efficiency of collecting Accounts Receivable |
| | | Sales | 41,510,000 | 8.61 | 40,460,000 | 9.82 | 38,300,000 | 9.25 |
| | | Accounts Receivable | 4,820,000 | | 4,120,000 | | 4,140,000 |
| 12 | Accounts Receivable Turn-Days | | | | | | | | | Average # of days it takes to collect Accounts Receivable |
| | | 360 | 360 | 42 | 360 | 37 | 360 | 39 |
| | | Accts. Rec. Turnover | 9 | | 10 | | 9 |
| 13 | Accounts Payable Turnover | | | | | | | | | Measures the efficiency of paying Accounts Payable |
| | | Cost of Revenue/Goods Sold | 27,430,000 | 16.33 | 27,290,000 | 16.44 | 26,050,000 | 14.31 |
| | | Accounts Payable | 1,680,000 | | 1,660,000 | | 1,820,000 |
| 14 | Average Payment Period | | | | | | | | | Average # of days it takes to pay Accounts Payable |
| | | 360 | 360 | 22 | 360 | 22 | 360 | 25 |
| | | Accts. Pay. Turnover | 16 | | 16 | | 14 |
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