Relevant financial ratios for all 3 years based from financial statements provided by Ocean Manufacturing, perspective client.

According to our discoveries, based on the financial reports provided, we can conclude that Ocean Manufacturing, Inc. is financially very stable. They have improved all their relevant ratios since two years ago. They seem to have had a very successful year in 2010, which is promising for investors as they can see potential growth. Ocean’s inventory turnover has steadily decreased every year. Their current assets, retained earnings, and sales all maintain a similar growing net projection from year to year.

2011 2010 2009Gross Profit Margin

2.39% 2.42% 2.23%

Operating Profit Margin

5.50% 6.00% 4.70%

Inventory Turnover

6.09 4.51 3.48

Accounts Receivable Turnover

11.69 13.10 14.02

Debt to Equity .515 .486 .354Return on Assets 4.54% 3.77% 3.39%Return on Equity 8.94% 7.17% 6.29%