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Otago Bay Financial Ratios: comparison to industry averages

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A) Calculate the following financial ratios for 2006 and 2007

Ratios Industry Averages (for 2007)
Current Ratio 2.36
Total Asset Turnover 1.27
Debt-equity ratio 10
Net Profit Margin 9.30
ROA 15.87
ROE 19.21
EPS 1.59
P/E Ratio 19.87
Dividend yield .44
Payout Ratio .26
Price-to Book Value 6.65

b) Considering the financial ratios you computed, along with the industry averages, how would you characterize the financial condition of Otago Bay? Explain.

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A comparison to industry averages for Otago Bay Financial Ratios are examined.

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