Identify whether the liquidity, efficiency, solvency, and profitability ratios have improved or declined since 2010.

Corby Distilleries Limited is a leading Canadian manufacturer and marketer


Corby Distilleries Limited is a leading Canadian manufacturer and marketer of spirits and imported wines. Corby’s portfolio of owned-brands includes some of the most renowned brands in Canada, including Wiser’s Canadian whiskies, Lamb’s rum, Polar Ice vodka, and McGuinness liqueurs.

Selected financial data (in thousands) for recent years are as follows:

Instructions

1. Determine the following measures for 2011 and 2010, rounding to one decimal place. Industry averages are provided in parentheses after each ratio.

a. Current ratio (2.4:1)

b. Accounts receivable turnover (11.3 times)

c. Inventory turnover (3.2 times)

d. Total asset turnover (0.6 times)

e. Debt ratio (63%)

f. Profit margin (2.8%)

g. Return on assets (1.7%)

h. Return on shareholders’ equity (4.6%)

2. Identify whether the liquidity, efficiency, solvency, and profitability ratios have improved or declined since 2010.

3. How does Corby Distillers compare to the industry averages?

Corby Distilleries Limited is a leading Canadian manufacturer and marketer

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