Analysation of the data of the four potential suppliers.

When we consider Liquidity ratios;-such as working capital,current ratio and quick

ratios higher the ratios there is more protection for the company for liquidity
problems.Here current ratio is higher for the kruger company that is of 2.56 which
is higher than that of Industrial average 2.19 and all the other three suppliers ratio
is less than that of industrial average.

QUICK RATIO indicates higher the ratio stronger the company when we consider
our suppliers the quick ratio is higher for kruger it is 1.28 which is higher than that
of industrial average it is 1.08.reese ratio is also higher than that of industrial
average.

HERE the performance of kruger is better than that of other suppliers.

FUND MANAGEMENT RATIOS;-The average collection period of the industry is 30

days ,except for the PAYNE all the suppliers collection period is less than that of the
industry.THIS indicates how soon the debtors can be converted into cash.

INVENTORY turn over ratio of REESE is more than that of industry i.e 12.65
RESPECTIVELY and the industry is of12.50. Inventory turnover is a measure of the number
of times inventory is sold or used in a time period such as a year. A low turnover rate may point to
overstocking,obsolescence, or deficiencies in the product line or marketing effort. Increasing inventory
turns reduces holding cost.Here the performance of REESE is better when compared to other suppliers.

FIXED ASSET TURNOVER RATIOS;- Generally speaking, the higher the ratio, the
better, because a high ratio indicates the business has less money tied up in fixed
assets for each dollar of sales revenue. A declining ratio may indicate that the
business is over-invested in plant, equipment, or other fixed assets.Here for all the
suppliers the ratio is high compared to that of industry it is of 5.80 and the highest
is forPAYNE it is of 12.30.

BY considering all the factors of management ratios REESE is better where its
performance is better in all aspects when compared to that of industry.

PROFITABILITY RATIOS;-THE Gross profit margin of all the three companies is

higher than that of industry except the PAYNE.The grossprofit of REESE is the
highest of all the three and than that of industry ,it is 16.8 and industries is of 14.6.

NTEPROFIT margin of REESE is very high than that of industry it is of 9.48 and
industys is of 6.57.

RETURN ON ASSETS;- An indicator of how profitable a company is relative to its total assets. ROA
gives an idea as to how efficient management is at using its assets to generate earnings. A higher ROA is
better, as it means that a company is more efficient about using its assets.RETURN ON INVESTMENT also indicates
the efficiency of the company.Her roi of REESE AND CAPOZZI IS higher than that of industry it is of 14.56 and 14.75
and industrys is of 14.20.
RETURN ON EQUITY;-The amount of net income returned as a percentage of shareholders
equity. Return on equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested.Here there is no industrial average ,and the
highest ROE is for PAYNE it is of 18.70.

DEBT RATIO;-A ratio that indicates what proportion of debt a company has relative to its assets. The
measure gives an idea to the leverage of the company along with the potential risks the company faces in
terms of its debt-loadA debt ratio of greater than 1 indicates that a company has more debt than assets,
meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt..DEBT ratio is
for all the suppliers is less than 1.
TIMES EARNING RATIO;-A metric used to measure a company's ability to meet its debt
obligations. Ensuring interest payments to debt holders and preventing bankruptcy depends mainly on a
company's ability to sustain earnings. A lower times interest earned ratio means less earnings are
available to meet interest payments and that the business is more vulnerable to increases in
interest rates.TIMES ratio is high in case of REESE.

FROM ALL THE FINANCIAL INFORMATION AND ITS ANALYSIS I CONCLUDE

REESE IS THE BEST SUPPLIER.
FROM ALL THE INFORMATION GIVEN THE UTILISATION OF PLANT CAPACITY AND
PRODUCTION EFFICIENCY AND CONSIDERING ALL THE FINANCIAL INFORMATION
AND CONSTRAINTS OF ALL THE OTHER SUPPLIERS AND OBSERVING THE QUOTED
PRICE OF REESE IS 245 WHICH IS LESS THAN THAT OF OTHER SUPPLIERS ,THOUGH
THE QUOTED PRICE OF PAYNE IS LESS IT IS NOT WORTHFUL TO SELECT AS THE
FINANCIAL RESULTS AND ANALYSIS OF STATEMENTS OF PAYNE PROVES THAT.