Calculate the ratios

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Analyzing Whirlpool's Acquisition of Maytag
To complete the requirements below you will need to obtain Whirlpool's income statements for 2005, 2007, and 2008, and its balanmce sheets for 2004 through 2008. The easiest way to obtain these income statements is to retrieve the company's 2005 and 2008 Form 10-Ks. To obtaim the Form 10-Ks you can use the EDGAR system followimng the instructions in Appendix A, or they can be found under the "Investors" link on the company's corporate website, www.whirlpoolcorp.com. On March 31, 2006, Whirlpool Corporation acquired Maytag, another manfacturer of home appliances. The company 2006, 2007,and 2008 finncial statements include the activities of May tag; its 2005 and 2004 statement do not.

Required

a. Calculate the following ratios for 2005, 2007, 2008 show your calculations.

Gross margin percentage net margin
Return on investment Return on equity
Current ratio Debt to assets ratio

b. Base on the ratios computed in requirement a, comment on the apparent effects of Whirlpool's acquisition of Maytag. Assume any significant change in these ratios was the result of the aquistion.

c. Based on this limited analysis, does it appear that the short-term effects of the acquisition were good or bad for Whirlpool

Reference no: EM13129790

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