Discuss what each of the ratios tells you about the company


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1) Calculate the gross profit ratio, operating margin ratio, and net income margin ratio for the latest two years, and obtain the industry average ratios (if available) from IBISWorld.

2) Analyze these ratios and discuss what each of these ratios tells you about the company's profitability, and how it compares to the industry averages.

3) Note any trends in these ratios from year-to-year, and discuss your assessment of the company based on these changes.

4) If you were an investor, explain why you would or would not buy stock in the company.

The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.

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Accounting Basics: Discuss what each of the ratios tells you about the company
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