Tire City Inc.

Tire City Inc. is a financial healthy company with the information provided. It is doing well through the ratios.

Interest coverage ratio:

The interest coverage ratio is not stable, and considering the Financial Statements it went from strong to super Strong.

ROE :

Tire City Inc. has been mostly consistent with 24% through the three years of 1993-1995; the company has been doing very well and should continue at the same pace to further improve.

Net Profit Margin:

Tire City Inc. has a consistent net profit margin equal from 4.8% to 5% through the years of 1993-1995. It can be considered as a top performing mass merchant.

Inventory DOH:

Tire City Inc.'s inventory days on hand is quit stable with the average of 59 days in the 3 years and comparing to the Financial Statements it's a normal range throughout the 3 years. It is a reasonable range with variations and some competition.

Long Term Debt Ratio:

The long-term debt of Tire City Inc. is going down, which is beneficial and supportive for the company. According to the Financial Statements the long-term debt of Tire City Inc. is secure and extremely conservative, they are a risk-averse firm so far.

Current ratio:

Tire City Inc. has a very steady current ratio at a mean of 2 during 1991-1993 and it's very strong ratio according to the Financial Statements and should continue to follow this.

Accounts Receivable DOH:

Account Receivable Days On Hand is stable with an average of 59 days from 1991-1993, according to the Financial Statements it is stable, and some improvement is mandatory.

Payables DOH:

Tire