External Financing

RATIO

FORMULA

CALCULATION

RATIO

INDUSTRY AVERAGE

COMMENT

Liquidity

3.2

4.2

Poor

Quick

1.2

2.1

Poor

Asset Management

Inventory turnover

4.9

9.0

Poor

Days sales outstanding (DSO)

45.6

36.0

Poor

Fixed assets turnover

3.0

3.0

OK

Total assets turnover

1.5

1.8

Poor

Debt Management

Debt ratio

53.2%

40.0%

High (risky)

Times-interest-earned (TIE)

3.2

6.0

Low (risky)

EBITDA coverage

3.0

4.3

Low (risky)

Profitability

Profit margin on sales

3.8%

5.0%

Poor

Basic earning power (BEP)

14.2%

17.2%

Poor

Return on total assets (ROA)

5.7%

9.0%

Poor

Return on common equity (ROE)

12.7%

15.0%

Poor

Market Value

Price/earnings (P/E)

10.1

12.5

Low

Price/cash flow

5.4

6.8

Low

Market/book (M/B)

1.3

1.7

Low