Ratio Industry Milans Fashions Ratio Evaluation Milans Evaluation

Norm 2015 Fashions Ratio

2016
Current ratio 4.5 times 13.3 times It is good 21.5 times It is good

Long- term debt to 12% 3.31% Low debt 3.09% Low debt to
Equity ratio equity

Debt to Equity ratio 30% 10.08% Low leverage 9.86% Low leverage

Total Debt ratio 20% 9.16% Low leverage 8.97% Low leverage

Financial leverage 1.10 1.10 Constant 1.09 Low leverage

ratio leverage
Inventory turnover 7 times 6 times Weak sale 5 times Weak sales

Fixed asset turnover 1.8 times 1.32 times It is not good 1.26 times It is not good

Debt to Capital ratio 43.4% 9.16% Low leverage 8.10% Low leverage

Interest coverage 5.0 times 18.4 times High coverage 19.10 times High coverage
ratio
Return on Assets 8.4% 2.2% Low ROA 2.1% Low ROA