GREAT FEATURE: To find the meaning or usage of any term, just click on the term to enter the Glossary.

Financial ratio analysis allows comparison of one industry/firm to another. Since financial ratio analysis looks at relationships inside the industry/firm, an industry/firm of one size can be directly compared to a second industry/firm (or a collection of industries/firms) which may be larger or smaller or even in a different business. Financial Ratio Analysis is a method of comparison not dependent on the size of either industry/firm. Financial Ratio Analysis provides a broader basis for comparison than do raw numbers. However, ratios on their own, without year-to-year or other industry/firm comparative ratios, are of little use in judging the health or future of the industry/firm being analyzed. Your MBA Financial Ratio Analysis provides you with 28 conversions of financial numbers for an industry/firm into ratios and two predictors of the future: Altman Z-Score and Sustainable Growth Rate.

XYZ Inc. (NASDAQ:XYZ)

http://www.xyz.com

TERM (Click Term for Glossary)	Last Qtr. End	Last Year Same Qtr.	Year End 2007	Year End 2006	Year End 2005	Year End 2004	Year End 2003
Net Sales in $M	11,706.0	9,778.0	41,444.0	35,404.0	31,168.0	31,888.0	25,265.0
PREDICTOR RATIOS:
Altman Z-Score	4.67	0.79	6.78	6.85	7.56	6.73	15.76
Sustainable Growth Rate	13%	11%	42%	44%	27%	40%	31%
PROFITABILITY RATIOS:
P/E Ratio	111.5	0.0	33.0	32.6	56.8	20.7	77.6
Gross Profit Margin on Sales	18.2%	18.2%	18.2%	17.9%	17.7%	20.2%	20.7%
Net Profit Margin (Pre-tax)	9.0%	9.1%	9.0%	8.5%	5.6%	10.0%	9.7%
Net Profit Margin (After-tax)	6.8%	6.4%	6.4%	6.0%	4.0%	6.8%	6.6%
Operating Expense to Sales	91.4%	91.4%	91.4%	92.0%	94.3%	91.6%	91.0%
Operating Profit to Sales	8.6%	8.6%	8.6%	8.0%	5.7%	8.4%	9.0%
Basic Earning Power	5.3%	5.4%	19.3%	19.6%	12.8%	23.4%	21.4%
Return on Assets (After-tax)	4.0%	3.8%	13.7%	13.7%	9.2%	16.4%	14.5%
Return on Equity	12.9%	11.3%	42.1%	43.5%	26.5%	39.8%	31.4%
ASSET MANAGEMENT RATIOS:
Collection Period (Period Average)	25.4	121.7	27.4	25.0	30.2	31.5	34.0
Collection Period (Period End)	28.3	107.6	32.0	26.7	26.6	33.1	37.7
Inventory Turns (Period Average)	24.7	23.4	107.1	99.5	75.7	64.3	60.4
Inventory Turns (Period End)	22.9	22.3	103.6	95.0	92.3	63.6	51.3
Days Inventory	3.7	15.6	3.4	3.7	4.8	5.7	6.0
Working Capital Turnover	37.6	28.5	-157.6	-3,933.8	87.1	10.8	10.2
Fixed Asset Turnover	7.4	9.2	27.3	38.8	37.7	32.0	33.0
Total Asset Turnover	0.6	0.6	2.1	2.3	2.3	2.3	2.2
LIQUIDITY RATIOS:
Current Ratio	1.0	1.0	1.0	1.0	1.0	1.4	1.5
Quick Ratio	1.0	1.0	0.9	1.0	1.0	1.4	1.4
Sales/Receivables	3.2	3.4	11.4	13.7	13.7	11.0	9.7
Gearing Ratio	7.5%	8.4%	7.4%	9.4%	10.0%	8.3%	8.7%
DEBT MANAGEMENT RATIOS:
Times Interest Earned	Z	Z	267.0	179.1	60.7	69.0	Z
Equity Multiplier	3.2	3.0	3.1	3.2	2.9	2.4	2.2
Fixed Assets (net)/Net Worth	0.25	0.19	0.24	0.19	0.18	0.18	0.14
Debt Ratio	0.7	0.7	0.7	0.7	0.7	0.6	0.5
Debt to Equity	2.2	2.0	2.1	2.2	1.9	1.4	1.2
Long-term-debt to Equity	0.1	0.1	0.1	0.1	0.1	0.1	0.1
Current-debt to Total Debt	82.5%	84.0%	83.6%	84.3%	85.0%	84.2%	84.2%