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What evidence of underperformance do you see in your analysis of the financial statements and ratios for Bobs? Is this suggestive that the management team is doing poorly? (Hint: start a financial analysis with a look at return on assets (ROA) and then decompose ROA into two components: profit margin and asset turnover).

		2016	2017	2018	2019	2020
Growth and Returns
Revenue Growth	[percentage change in revenue]	5.50%	-2.60%	13.00%	18.40%	9.50%
Return on Assets	[net profit / total assets]	15.40%	9.30%	1.70%	1.10%	1.40%
Return on Net Assets	[NOPAT / net assets]	19.00%	11.90%	3.50%	2.60%	2.80%
Return on Equity	[net profit / shareholders equity]	24.20%	12.60%	4.50%	3.00%	3.90%
Margins
Gross Margin	[gross profit / revenue]	28.10%	26.80%	25.30%	23.80%	22.00%
SG&A Percentage	[SG&A expenditures / revenue]	9.90%	15.50%	18.30%	19.10%	17.30%
Operating Margin	[operating profit / revenue]	18.30%	11.30%	7.00%	4.60%	4.70%
Net Profit Margin	[net profit / revenue]	13.70%	8.40%	2.80%	1.60%	2.00%
Asset Efficiency
Asset Turnover	[revenue / total assets]	1.1	1.1	0.6	0.7	0.7
PPE Turnover	[revenue / net PP&E]	2.1	2.1	0.8	0.9	0.9
NWC Turnover	[revenue / net working capital]	NA	NA	NA	34	35.8
AR Days (DSO)	[accounts receivable / revenue 365]	19.2	19.1	17.6	20.3	20.1
Inv Days (DIO)	[inventory / COGS 365]	17.9	20.7	19.6	21	20.7
AP Days (DPO)	[accounts payable / COGS 365]	32.5	36	35.8	27.8	21.2
Leverage
Debt / Total Capital	[debt / (debt + shareholders equity)]	22%	7%	59%	60%	60%
Summary Accounts (in millions of US dollars)
NOPAT (t = 25%)	[operating profit (1 tax rate)]	26	16	11	9	10
Net Working Capital	[current assets current liabilities]	-2	-5	-1	7	8
Net Assets	[net working capital + net fixed assets]	137	132	312	329	346

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