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2016 2015 2014

Sales trend with 2014 as base year 137.0 125.0 100.0

Selling expenses to net sales 9.8% 13.7% 15.3%

Sales to plant assets 3.5 3.3 3.0

Current ratio 2.6 2.4 2.1

Acid-test ratio 0.8 1.1 1.2

Merchandise inventory turnover 7.5 times 8.7 times 9.9 times

Accounts receivable turnover 6.7 times 7.4 times 8.2 times

Total asset turnover 2.6 times 2.6 times 3.0 times

Return on total assets 8.8% 9.4% 10.1%

Return on owner’s equity 9.75% 11.50% 12.25%

Net profit margin 3.3% 3.5% 3.7%

Is it becoming easier for the company to meet its current debts on time and to take advantage of cash discounts?

Is the company collecting its accounts receivable more or less rapidly over time?

Is the company’s investment in accounts receivable decreasing or increasing?

Are dollars invested in inventory increasing or decreasing?

Is the company’s investment in plant assets increasing or decreasing?

Is the owners’ investment in the company becoming more or less profitable?

Is the company using its assets efficiently?

Did the dollar amount of selling expenses decrease during the three-year period?

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Jarrod Robel
Jarrod RobelLv2
28 Sep 2019

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