Performing ratio analysis using real-world data
Tupperware Company claims to be a global direct seller of premium, innovative products across multiple brands and categories through an independent sales force of approximately 2.1 million." Its goods are sold in almost 100 countries through its eight brands. The following data were taken from the company's 2007 annual report. Dollar amounts are in millions.
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Fiscal Years Ending
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December 29, 2007
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December 30, 2006
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Current assets
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$ 699.5
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$ 586.6
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Current liabilities
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450.3
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359.3
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Total assets
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1,868.7
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1,712.1
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Total liabilities
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1,346.0
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1,311.6
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Required
a. Compute Tupperware's current ratios for 2007 and 2006.
b. Compute Tupperware's debt to assets ratios for 2007 and 2006.
c. Based on the ratios computed in Requirements a and b, did Tupperware's liquidity get better or worse from 2006 to 2007?
d. Based on the ratios computed in Requirements a and b, did Tupperware's solvency get better or worse from 2006 to 2007?