Ratio Analysis for Columbia Sportswear
Refer to the financial statement information of Columbia Sportswear reprinted at the back of the book.
Required
1. Compute the following ratios and other amounts for each of the two years, ending Decem- ber 31, 2011, and December 31, 2010. Because only two years of data are given on the bal- ance sheets, to be consistent, you should use year-end balances for each year in lieu of average balances. Assume 360 days to a year. State any other necessary assumptions in mak- ing the calculations. Round all ratios to the nearest one-tenth of a percent.
a. Working capital
b. Current ratio
c. Acid-test ratio
d. Cash flow from operations to current liabilities
e. Debt-to-equity ratio
f. Cash flow from operations to capital expenditures
g. Asset turnover
h. Return on sales
i. Return on assets
j. Return on common stockholders' equity
2. What is your overall analysis of the financial health of Columbia Sportswear?