Marvel Enterprises, Inc. is one of the world's most prominent character-based entertainment companies, owning over 4,700 characters, including Spider-Man, The Incredible Hulk, X-Men, Daredevil, and The Fantastic Four. The company's stock is traded publicly on the New York Stock Exchange.

Marvel Enterprises, Inc. is one of the world's most prominent character-based entertainment companies, owning over 4,700 characters, including Spider-Man, The Incredible Hulk, X-Men, Daredevil, and The Fantastic Four. The company's stock is traded publicly on the New York Stock Exchange.

 

You have been asked three questions about the financial results in 2012 and 2011:

 

For each question, (1) name the appropriate ratio for answering the question, (2) calculate the ratio for each of the two years (using the summary data below), and (3) use your calculations to prepare an answer.

	2012	2011	2010
Current Assets	$130,615	$106,227	$121,443
Total Assets	524,519	509,570	545,957
Current Liabilities	89,011	68,237	79,376
Total Liabilities	241,870	262,637	320,376
Total Stockholders' Equity	282,649	246,933	225,581
Sales Revenue	290,046	175,284	231,651
Net Income (Loss)	21,610	5,165	(96,858	)

 

(a-1)

Calculate Debt-to-assets ratio? (Round your answers to 2 decimal places. Omit the "%" sign in your response.)

 

	2012	2011
Debt-to-assets ratio	%	%

 

(a-2)

Did the company increase or decrease its relative reliance on creditors for financing the purchase of assets?

 

Decreased

 

(b-1)

Calculate Net profit margin ratio. (Round your answers to 2 decimal places. Omit the "%" sign in your response.)

 

	2012	2011
Net profit margin ratio	%	%

 

(b-2)

Did the company become more successful or less successful in controlling its expenses while generating sales?

 

More successful

 

(c-1)

Calculate Asset turnover ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "%" sign in your response.)

 

	2012	2011
Asset turnover ratio	%	%

 

(c-2)

Did the company become more efficient or less efficient in using its assets to generate sales?

 

More efficient

 

Explanation:

(a)	Increased or decreased relative reliance on creditors?

 

(1)	Debt-to-assets ratio

	241,870	= 46.11%	262,637	= 51.54%
	524,519		509,570

(2)

decreased

 

(b)	More or less successful in generating sales while controlling expenses?

 

(1)	Net profit margin ratio

	21,610	= 7.45%	5,165	= 2.95%
	290,046		175,284

(2)	more successful

 

(c)	More or less efficient in using assets to generate sales?

 

(1)	Asset turnover ratio

	290,046	= 56.10%	175,284	= 33.21%
	[(524,519 + 509,570)/2]		[(509,570 + 545,957)/2]

(2)	more efficient