The following financial data are adapted from the annual reports of...

The following financial data are adapted from the annual reports of Bechuram Inc.:  

 

Bechuram Inc. 

Four -Year Select Financial Data 

Years Ended January 31, 2017, 2016, 2015,2014 

  

Operating Results 

2017 

2016 

2015 

2014 

  

 

Net Sales 

$13,848 

$13,673 

$11,635 

$9,054 

  

 

COGS (excluding depreciation and amortization) 

9704 

8599 

6775 

5318 

  

 

Interest Expense 

109 

75 

45 

46 

  

 

Income from Operations 

338 

1445 

1817 

1333 

  

 

Net Earnings  

-8 

877 

1127 

824 

  

 

Cash Dividends 

76 

75 

76 

77 

  

 

Financial Position:  

  

  

  

  

  

 

Merchandise Inventory 

1677 

1904 

1462 

1056 

  

 

Total Assets 

7591 

7012 

5189 

3963 

  

 

Current Ratio 

1.48:1 

0.95:1 

1.25:1 

1.20:1 

  

 

Shareholders' Equity 

3010 

2928 

2630 

1574 

  

 

Average number of shares of common stock outstanding (in thousands) 

860 

879 

895 

576 

  

 

  

  

  

  

  

  

 

 

Compute the following ratios for 2015 through 2017 and evaluate Bechuram's operating results. Are operating results strong or weak? Did they improve or deteriorate during the three-year period? Your analysis will reveal a clear trend.  

a. Inventory turnover (assume occupancy expenses are included in cost of goods sold) 

b. Gross profit percentage  

c. Operating income (profit) percentage  

d. Return on sales  

e. Asset turnover  

f. Return on assets  

g. Leverage ratio  

h. Return on shareholders' equity  

i. Times-interest-earned ratio  

j. Earnings per share