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Net Sales
Sales Growth
1988
$1,697
-
1989
$2,013
18.6%
1990
$2,694
33.8%
Total Asset
Asset Growth
$594
-
$736
23.91%
$933
26.77%
Taking into account of its the profitability, Butler Lumber Company has
increasing ROE.
Net Income
Shareholders Equity
ROE
$31
$270
0.115
$34
$304
0.112
$44
$348
0.126
Its credit terms also enable the business to increase it days in payables
and its management of its inventory as a proportion of sales indicates a
better management of inventory over years.
Sales
Inventory
Inventory Turnover
$1,697
$239
7.10
$2,013
$326
6.17
$2,694
$418
6.44
On the flip side of the coin, there might some ratios that might indicate
otherwise such as ROA and profit margin. However, given its strategy,
the profit margin decrease is largely justified.
Net Income
Net Sales
Profit Margin
$31
$1,697
0.018
$34
$2,013
0.017
$44
$2,694
0.016
Net Income
Total Assets
ROA
$31
$594
0.052
$34
$736
0.046
$44
$933
0.047
In terms of liquidity, both Butlers current and quick ratios along with
time interest earned have been the decreasing over the years.
However, the numbers still indicates good ability to pay off debt in case
of liquidation and still remains healthy.
Total Asset
Total Liabilities
Current Ratio
Current Assets
Inventories
Current Liabilities
Quick Ratio
$594
$324
1.83
$468
$239
$260
0.88
$736
$432
1.70
$596
$326
$375
0.72
$933
$585
1.59
$776
$418
$535
0.67
Total Liabilities
Shareholders Equity
$324
$270
$432
$304
$585
$348
DE Ratio
1.20
1.42
1.68
Total Debt
Total Asset
Debt Ratio
$71
$594
0.12
$64
$736
0.09
$57
$933
0.06