1. Compute the following ratios listed using the normalized data for each of the 5 years.
Ratios to be calculated are: Industry Average
I. Growth Ratios
- Sales Growth Percentage n/a
- Earnings Growth Percentage n/a
11. Cost Control Ratios
- Cost of Sales/Sales n/a
- Gross Margin or Profit 41.2
- Operating Expenses to Sales 37.4
- Operating Margin or Profit 3.8
III. Turnover Ratios
- Receivable Turnover 101.7
- Inventory Turnover 3.5
IV. Profitability Ratios
- Return on Assets 7.4
- Return on Equity 16.8
v. Risk
- Debt/Equity Percentage 0.5
- Current Ratio 1.7
- Interest Coverage 3.5
2. Trends: Analyze the ratios you calculated for each of the 5 years. Analyze and explain why you believe they are indicative of issues (positive or negative) to your planned valuation of Awesome Products Inc.
Attachment:- The-Awesome-Product-Business-Valuation.rar