osFinancial RatiosUST Industry average *from appendixLiquidity ratiosQuick ratio= current asset/current liabilities 441,844/166,519 = 2.650.87Quick Ratio =(current assets- inventory)/ current liabilities(441,844-319,666)/166,519 = 0.740.15Leverage ratios Debt-to-total- assets ratio=total debt/total assets388,783/826,714 = 0.47-Debt –to- Equity Ratio = total debt/total stockholders’ equity388783/437931 =0.891.28Long-term debt-to-equity ratio =long-term debt/ total stockholders’ equity100000/437931 =0.291.26Times –Interest – Earned Ratio = profits before interest and taxes/total interest charges(702857-7451)/7451 =93.46-Activity RatiosInventory turnover = sales/inventory of finished goods1401718/265193 =5.28-Fixed asset turnover = sales/ fixed assets1401718/326709 =4.29-Total assets turnover = Sales/total assets1401718/826718 =1.69-Profitability ratios Cross profit margin =(sales– cost of good sold)/sales (703857-7415 )/1401718 =0.4976-Operating profit margin = earnings before interest and taxes/ sales439138/1401718 =0.3132(31.32)11.01Net profit margin = net income/ sales439138/826714 =0.53-Return on total assets = net income/ total assets439138/437931 =1.00-Earnings per share = net income/number of shares of common stock outstanding 439138/183931 =2.39-c)Table 3Internal Factor Evaluation Matrix for UST Inc.Key internal factorsWeightRatingWeighted scoreInternal strengths1. Great sales tacking and responding system(STARS)0.1040.402. Increased in sales0.1530.453.Leader in the smokeless tobacco market0.0540.204.Highest profit margin and return on asstets0.1040.405.Introducing new products0.1040.406.Good product planning0.1030.307. Good image (discourage the use of its products by minors)0.0530.158. Good diversification0.1030.30Internal weaknesses1. Increased expenses0.1010.202. Most properties located in one area0.0520.103. Decreasing net earnings0.1010.10Total1.003.00The firm’s major strengths ar...
