2002 2003 Earnings PerShare: 1.60 1.66 Return OnAssets: 4.5% 4.2% CurrentRatio:

ID: 2502233 • Letter: 2

Question

2002 2003

Earnings PerShare: 1.60 1.66

Return OnAssets: 4.5% 4.2%

CurrentRatio: 0.63 0.76

Times InterestEarned: 21.41 144.37

AssetTurnover: 0.96 1.00

Debt To TotalAssets: 0.39 0.45

Current Cash Debt Coverage: 0.43 0.43

Cash DebtCoverage: 0.18 0.14

Free CashFlow: -748,928,495 -870,849,444

Earnings per Share have increased from 1.6 to1.66.

That indicates an increase in Net Income.

Return on Assets has decreased from 4.5% to4.2%

This might indicate a purchase of some assets.

Current Ratio has increased from 0.63 to 0.76.

This indicates anincrease in current assets .

Asset turnover has increased from 0.96 to 1.00.

This indicatesan increase in salesvolume .

Debt to total assets has increased from 0.39 to0.45.

This indicates an increase in total debt.

This might be due to purchase of new assets on credit .

Current Cash Debt Coverage shows no change.

However it is less than one .

This shows that the net cash provided by operating activities isnot sufficient to meet average currentliabilities.

This indicates that the financial liquidity is belowaverage .

Cash Debt Coverage Ratio has decreased from 0.18 to0.14.

This indicates adecrease in some liabilities.

This also indicatesanimprovement in financialflexibility.

An increase in a negative Free Cash Flowindicates that thecompany needs to increase its Cash from operations.

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