For comparison purposes, it also integrates the industry averages. This tripe presentation of the ratios allows for the comparison of the company's evaluation relative to itself, as well as its current comparison relative to the other players in the restaurants' industry.
Table 4: Financial ratios
2011
5-year average
Industry average
Price to earnings ratio
20.77
21.52
35.11
Sales
3.63
7.02
9.97
Debt to equity ratio
0.0
0.19
78.34
Gross profit margin
74.71
74.81
57.78
Net profit margin
5.28
4.28
1.49
Return on equity
NA*
11.7
10.22
Return on assets
8.3
6.1
6.15
Return on invested capital
14.7
7.52
7.38
* The return on equity cannot be collected as the company has not made public the total shareholder equity for 2010, with the last data in the annual report only revealing the equity for 2009.
* Data collected from Reuters and Forbes
Interpretation of the financial ratios:
The price to earnings...
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