4-6 Key Ratios NWC Indust Condition BEP 10.00% 20.00% Poor Profit Margin 2.52% 4.00% ROE 7.20% 15.60% DSO 43.20 days 32.00 days Inv turnover 8.33X 11.00x FA turnover 4.00x 5.00x TA turnover 200x 2.50x Debt/ assets 30.00% 36.00% Good TIE 6.25x 940X Poor Current ratio 2. 50x 3.00X Payout ratio 30.00% 30.00% O. K Copy right C 2002 by Harcourt, Inc. All rights reserved4 - 6 Copyright © 2002 by Harcourt, Inc. All rights reserved. NWC Industry Condition BEP 10.00% 20.00% Poor Profit Margin 2.52% 4.00% “ ROE 7.20% 15.60% “ DSO 43.20 days 32.00 days “ Inv. turnover 8.33x 11.00x “ F.A. turnover 4.00x 5.00x “ T.A. turnover 2.00x 2.50x “ Debt/ assets 30.00% 36.00% Good TIE 6.25x 9.40x Poor Current ratio 2.50x 3.00x “ Payout ratio 30.00% 30.00% O.K. Key Ratios