Analysis:

Liquidity Ratio
Current Ratio
An increasing current ratio of STXs company for the year 2014 is 2.41 which compared to the
year 2011 as the baseline of 1.86 indicating that the company has a strong ability to cover its short- term
obligations because of supplementary assets.
Quick Ratio
STX Companys quick ratio increased as for year 2014 is 2.00, which indicates that the
companys ability to deal short-term obligations is favourable because of its lesser inventories supply.
Cash Ratio
The cash ratio from 2012 to 2014 is significantly increasing which means that STX has enough
cash and equivalents to pay off 111 percent of her current liabilities. This is a fairly high ratio which
means the company maintains a relatively high cash balance during the year.
Cash- Flow Ratio
STXs cash- flow liquidity ratio increased from 2012 until 2014 because of its higher cash and
cash equivalents amounts which contributed to the stronger short- term solvency in 2014.
Activity Ratio
Accounts Receivable Turnover
STXs Company accounts receivable is deteriorating from 7.44 in 2012 to 6.82 in 2013,
decreased by 0.62 times due to its higher uncollected accounts from that sale. But the converted cash
receivables turned into cash has improved 7.54 times in 2014 from 6.82 times in 2013. This means that
STX collects their receivables about 7.54 times a year or once every 48 days. In other words, when the
company makes a credit sale, it will take 48 days to collect the cash from that sale.
Accounts Payable Turnover

Inventory Turnover

Asset Turnover

Average Sale Turnover

Leverage Ratios
Debt Ratio
STX debt ratio in 2014 is 0.70 is not favourable. It implies a relatively high percentage of
leverage compared to a common reasonable debt ratio of 0.50. STX Company will not be able to generate
enough cash to pay its debt obligations.
Debt- to- Equity Ratio
The debt- to- equity ratio of the STX company from 0.21 in 2012 and 0.15 in 2013, which implies
a good or low debt-to- equity ratios. It indicates that STX is not taking advantage of the increased profits
that financial leverage may bring. However, from 0.15 it reaches to 2.35 in 2014, due to the increased of
its long- term debt while having a decreased of 0.33% of the retained earning to the company.
Times Interest Earned
A decreasing times interest earned ratio of STX company for 2014 is 9.11, which compared from
12.89 ratio of the year 2012 it indicates that the company cant afford to pay additional expenses because
of deteriorating operating profit.

From 2011 to 2012 the companys gross profit ratio is deteriorating because of higher amount of
expenses in making sales but then from 2012 until 2014