Ratio Analysis for Columbia Sportswear
Refer to the financial statements information of Columbia
Sportswear reprinted at the back of the book.

Required
A. Compute the following ratios and other amounts for each of the
two years, ending December 31, 2011, and December 31, 2011. because
only two years of data are given on the balance sheets, to be
consistent, you should use year end balances for each year in lieu
0f average balances. Assume 360 days to a year. State any other
assumptions in marking the calculations. Round all ratios to the
nearest one-tenth of a percent.
A. working capital
B. Current ratio
C. Acid-test ratio
d. Cash flow from operations to current liabilities
e. Debt-to-equity
f. Cash flow from operations to capital expenditures
g. Assets turnover
h. Return on sales
I. Return on assets
j. Return on common stockholders equity

A. What is your overall analysis of the financial
health of Columbia sportswear?

Additional requirements.
1. Compute the required ratios under part 1 for Columbia based on
the financial statements in the back of the book in appendix
C.
2. Comment on Columbia liquidity has it been improving or
declining?
3. Does the company appear to be solvent? Explain your
answer.
4. Comment of the profitability of Columbia. would you buy stock in
the company? Why or why not?