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Ratio Analysis Performance Terms

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Base on the information provided (please see attachment), Please explain the company's performance in terms of its liquidity, debt and asset management, profitability, profitability, activity, and market value. What do the numbers say about the company and its past, present, and future potential? Use tables and graphs as appropriate to present your data.

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Ratio Analysis

Historical Ratios
PetSmart, Inc.
Actual Actual Actual Industry
Ratio 2008 2009 2010 Average
Liquidity
Current ratio 1.83 1.89 2.0 1.7
Quick ratio 0.6 0.9 0.9 1.0
Activity
Inventory turnover (times) 8.7 9.4 9.3 6.9
Average collection period (days) 5.5 6.1 6.3 25.5
Total asset turnover (times) 2.2 2.2 2.4 1.5
Debt Management
Debt ratio 0.51 0.52 0.49 0.65
Times interest earned 6.23 6.12 7.70 20.8
Profitability
Gross profit margin 30.53% 29.62% 28.8% 41.6%
Net profit margin 5.77% 5.34% 4.2% 5.3%
Return on total assets ...

Solution Summary

Ratio analysis performance terms are examined. The past, present and future potentials are examined.

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