Essay About Current Ratio And Gross Margin42.4638.3640.6543.29Operating Margin8.442.274.097.68Return

Profitability Ratios
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Profitability Ratios2013-122014-122015-122016-12Gross Margin42.4638.3640.6543.29Operating Margin8.442.274.097.68Return on Assets %4.21.512.174.58Return on Equity %10.463.765.7311.94Return on Invested Capital %9.334.435.859.96Interest Coverage6.141.642.784.69Net Profit Margin0.0480.000740.0160.043Liquidity Ratios2013-122014-122015-122016-12Current Ratio1.351.341.261.34Working Capital EUR Mil2,9983,1792,6253,602Leverage Ratios2013-122014-122015-122016-12Long-term debt to capital 0.230.250.260.24Debt-to-equity ratio0.30.340.350.32Coverage ratio6.141.642.784.69Long-term debt to equity 0.30.340.350.32Activity Ratios2013-122014-122015-122016-12Days Inventory90.1190.7285.9689.98Inventory Turnover4.054.024.254.06Average Collection Period0.290.290.250.25Other Important Measures of Financial Performance2013-122014-122015-122016-12Pay-out Ratio % *104.690.6128.1199.8Free Cash Flow EUR Mil5027522101,035Dividends EUR0.750.680.810.81Earnings Per Share EUR1.270.450.71.56Profitability Ratios        From the ratio analysis it show that the gross profit margin of year 2016 is 43.29 is higher than year 2015 which is 40.65 which means during year 2016, Philips has more revenue to cover the operating expenses and gain profit.