CheckPoint
Interpreting Financial Ratios
Resource:Ch. 6 of Understanding Financial Statements
Complete Problem 6.2 on p. 230 (Ch. 6).
Submit your answer in 200 to 300 words.
6.2.Luna Lighting, a retail firm, has experienced modest sales growth over the past three years
but has had difficulty translating the expansion of sales into improved profitability. Using
three years financial statements, you have developed the following ratio calculations and
industry comparisons. Based on this information, suggest possible reasons for Lunas profitability
problems.
.0/msohtmlclip1/01/clip_image002.jpg”>