Financial Analysis

Ratio

Year 1

Year 2

Current ratio

3.12:1

2.96:1

Quick ratio

1.34:1

1.02:1

Receivables turnover

9.7 times

10.2 times

Inventory turnover

2.4 times

2.3 times

Profit margin

11.4%

12.6%

Asset turnover

1.21 times

1.22 times

Return on assets

13.7%

15.4%

Return on equity

28.5%

29.3%

Price-earnings ratio

10.4 times

12.4 times

Debt ratio

50.2%

45.3%

Times interest earned

9.6 times

13.0 times