Ratio Analysis Numerical

Formulae

1. Liquidity ratios:
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
a. Current ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑄𝑢𝑖𝑐𝑘 𝐴𝑠𝑠𝑒𝑡𝑠
b. Quick ratio = (Where, Quick assets = Current assets – Inventory)
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝐶𝑎𝑠ℎ 𝑎𝑛𝑑 𝑚𝑎𝑟𝑘𝑒𝑡𝑎𝑏𝑙𝑒 𝑠𝑒𝑐𝑢𝑟𝑖𝑡𝑖𝑒𝑠
c. Cash ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑁𝑒𝑡 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑐𝑎𝑝𝑖𝑡𝑎𝑙
d. Net working capital to total assets ratio =
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠
e. Interval measure =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑑𝑎𝑖𝑙𝑦 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑐𝑜𝑠𝑡

2. Asset Management Ratios:

𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑
a. Inventory Turnover Ratios (ITOR) =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
𝑆𝑎𝑙𝑒𝑠
Or ITOR =
𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
𝐷𝑎𝑦𝑠 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟
b. Days’ sales in inventory (average age of inventory) or ICP =
𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟
𝐴𝑛𝑛𝑢𝑎𝑙 𝑐𝑟𝑒𝑑𝑖𝑡 𝑠𝑎𝑙𝑒𝑠
c. Receivable turnover Ratio (RTOR) =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑎𝑐𝑐𝑜𝑢𝑛𝑡 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
d. Days sales outstanding (DSO) = ,
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑎𝑙𝑒𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦
𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒 𝑋 𝐷𝑎𝑦𝑠 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟
Or DSO =
𝐴𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑒𝑠
𝐷𝑎𝑦𝑠 𝑖𝑛 𝑎 𝑦𝑒𝑎𝑟
Or DSO = , it is also called average collection period:
𝑅𝑇𝑂𝑅
𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑝𝑎𝑦𝑎𝑏𝑙𝑒
e. Average Payment Period (APP) =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑝𝑒𝑟 𝑑𝑎𝑦
𝑆𝑎𝑙𝑒𝑠
f. Fixed assets turnover ratio (FATOR) =
𝑁𝑒𝑡 𝑓𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡𝑠
𝑆𝑎𝑙𝑒𝑠
g. Total assets turnover ratio (TATOR) =
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
𝑆𝑎𝑙𝑒𝑠
h. Net working capital Turnover Ratio (NWCTOR) = ,
𝑁𝑒𝑡 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑐𝑎𝑝𝑖𝑡𝑎𝑙
Where Net WC = CA-CL

3. Debt management Ratios:

𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡
a. Debt-Assets Ratio or Debt ratio (DA Ratio) =
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
𝐷𝐸
Or DA Ratio =
1+𝐷𝐸
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡
b. Debt-Equity Ratio (DE ratio) =
𝑇𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦
𝐷𝐴
Or DE Ratio =
1−𝐷𝐴

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Ratio Analysis Numerical

𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
c. Equity multiplier (EM) =
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦
1
Or EM =
1−𝐷𝐴
Or EM = 1+DE
𝐿𝑜𝑛𝑔−𝑡𝑒𝑟𝑚 𝑑𝑒𝑏𝑡
d. Long-term Debt to Total Assets Ratio =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
𝐸𝐵𝐼𝑇
e. Interest Coverage Ratio (Time Interest Earned Ratio) TIE ratio =
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠
(Where EBIT refers to Earnings before interest and tax)
𝐸𝐵𝐼𝑇+𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛
f. Cash Coverage ratio =
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
𝐸𝐵𝐼𝑇𝐷𝐴+𝐿𝑒𝑎𝑠𝑒 𝑝𝑎𝑦𝑚𝑒𝑛𝑡
g. EBITDA Coverage Ratio =
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡+𝐿𝑒𝑎𝑠𝑒 𝑝𝑎𝑦𝑚𝑒𝑛𝑡+𝑃𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝑟𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡

4. Profitability Ratios:
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
h. Net Profit Margin (NPM) =
𝑆𝑎𝑙𝑒𝑠
𝐺𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡
a. Gross Profit Margin (GPM) =
𝑆𝑎𝑙𝑒𝑠
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑝𝑟𝑜𝑓𝑖𝑡
b. Operating profit ratio =
𝑆𝑎𝑙𝑒𝑠
𝐸𝐵𝐼𝑇
c. Basic Earning Power Ratio =
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
d. Return on Assets (ROA) =
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
e. Return on Equity (ROE) =
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦

5. Market Value Ratios:

𝑀𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 (𝑀𝑃𝑆)
a. Price Earnings Ratio (PE ratio) =
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 (𝐸𝑃𝑆)
𝑀𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 (𝑀𝑃𝑆)
b. Market to Book Ratio =
𝐵𝑜𝑜𝑘 𝑉𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 (𝐵𝑉𝑃𝑆)
𝑀𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 (𝑀𝑃𝑆)
c. Price/cash flow ratio = ,
𝐶𝑎𝑠ℎ 𝑓𝑙𝑜𝑤 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
Where Cash flow = Net income + Depreciation and amortization

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 Ratio Analysis Numerical

DoPont system is an integrated view on financial analysis, planning and control process relating to firm.
This system of financial analysis was first propounded and used by DuPont corporation. This system of
ratio analysis is more popular for making classified assessment of financial performance of a firm. This
provides a summary of firm’s profitabilty in terms of return on assets (ROA) and return on equty (ROE).

Dupont Identity allows the financial manager to break down firms return on equity into three
components namely, profitabilty on sales, porducitve power of asset and leverage effects on equity
return. The first component, profitabilty on sales, helps to study the impact of chage in selling price to
sales and profitabiltiy. This also enables to identify the key area where costs have to be controlled to
maximize profitabilty. Second componet, assets turnover ratio, helps in determining the need of
changing investmetn into various types of assets. By looking at this componets, the financial manager
can assess whether excessive or deficit level of current assets has caused low productivity of assets. The
last component, equity multiplier, shows the proportion of equity uased to fiinance the assets. Both
excessive or deficit proportion of debt used results into low return on equity. Therefore, the financial
manager, just looking at the componets of DuPont equation, can decide about the best financing
alternaives. Follwing chart clearly shows these relationship.

Return on Asset (ROA)

Profit Margin Assets Turnover

x

Sales ÷ Total Assets

Net Income ÷ Sales

Sales - Total Costs Fixed assets + Current assets

Operating Expenses Depreciation Cash and Banks Marketable Securities

Taxes Interest Inventories Account Receivable

𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 𝑆𝑎𝑙𝑒𝑠

ROA = X
𝑆𝑎𝑙𝑒𝑠 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 𝑆𝑎𝑙𝑒𝑠 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
ROE = 𝑋 X
𝑆𝑎𝑙𝑒𝑠 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 𝐸𝑞𝑢𝑖𝑡𝑦

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Ratio Analysis Numerical

Problems

Problem 1: Consider the following balance sheet:

Assets Amount Liability and Equity Amount

Cash and Bank $20,000 Account Payable $20,000
Account receivable 40,000 Accrued expenses 15,000
Inventory 40,000 Long-term debt 50,000
Net Fixed Assets 150,000 Common stock (10,000 share@10) 100,000
Retained earning 65,000
Total Assets 250,000 Liabilities and Equity 250,000

Calculate: (a) Current ratio (b) Quick ratio (c) Cash ratio. Ans: 2.85X, 1.71X, 0.571X

Problems 2: Following financial data are extracted from financial statements for the year 2014 of a firm:

Sales: $1,000,000 (20% of sales are in cash)

Cost of Goods Sold: 80 percent of sales

Jan 1, 2014 Dec 31, 2014

Inventory $180,000 $220,000
Account Receivable 100,000 380,000
The firm has $380,000 in net fixed assets and $800,000 in total assets as on December 31, 2014.

Calculate: (a) Inventory turnover ratio (b) Receivable turnover ratio (c) Fixed assets turnover ratio

(d) Total assets turnover ratio (e) Write a short note on efficiency ratios

Ans: 4 times 3.33times, 2.63times, 1.25 times

Problem 3: Consider the following balance sheet:

Assets Amount Liabilities and Equity Amount

Cash and Bank $100,000 Accounts Payable $150,000
Account receivable 300,000 Accrued expenses 80,000
Inventory 550,000 Deferred taxes 50,000
Furniture 50,000 Bond 200,000
Equipment 200,000 Long-term loan 100,000
Plant and Machinery 500,000 Common stock (10,000 shares @ 100) 1000,000
Retained earning 120,000
Total Assets 1,700,000 Total Liabilities and Equity 1,700,000
Calculate: (a) Debt ratio (b) Debt-equity ratio (c) Equity multiplier (d) Long-term debt to total assets ratio

(e) Describe about debt management ratios? Ans; 34.12%, 51.79%, 1.52X, 17.65%

Problem 4: A firm has a long-term debt to equity ratio of 0.4. Shareholders’ equity is $1 million. Current
assets are $200,000 and the current ratio is 2.0. The only current liabilities are notes payable. What is its
total debt ratio? Ans: 33.33%

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Ratio Analysis Numerical

Problem 5: Read the following condition and answer carefully

A Garment Export company limited has $5 million of debt outstanding, and it pays an interest rate of 12
percent annually. Its annual sales are $20 million, its average tax is 25 percent and its net profit margin
on sales is 3 percent. If it does not maintain a times interest earned (TIE) ratio at least 4 times, its bank
will refuse to renew the loan and bankruptcy will result.

a. What do you mean by Times Interest Earning Ratio (Interest coverage ratio).Compute the
company’s TIE ratio

b. By what percentage, net profit margin should increase in order to get loan renewed?

c. Why do we need to know about the concept of Asset Management Raito of a firm?

Ans: 2.43 times, 125%

Problem 6: USV Limited’s net income for the most recent year was $8175 million. The tax rate was 34
percent. The firm paid $2380 million in total interest expenses and deducted $1560 million in
depreciation expenses. What was the firm’s cash coverage ratio for the year? Ans; 6.86 times.

Problem 7: Following are the income statement and balance sheet data available for ABC Pvt ltd.

Amount
Sales $2,000,000
Less: Cost of Goods Sold 1,500,000
Gross profit 500,000
Less: Selling and distribution expenses 200,000
EBIT 300,000
Less: Interest expenses 100,000
EBT 200,000
Less: Taxes@40% 80,000
Net Income 120,000
Total assets $800,000; Total Equity $600,000

Calculate: (a) Gross profit margin (b) Net profit margin (c) Operating profit ratio (d) Return on assets

(e) Return on equity (f) Basic earning Power Ans: 25%, 6%, 15%, 15%, 20%, and 37.5%

Problem 8: Delta Corporation’s ROE last year was only 3 percent but its management has developed a
new operating plan designed to improve things. The new plan calls for a total debt ratio of 60 percent,
which will result in interest charges of $300,000 per year. Management projects an EBIT of $1,000,000
on sales of $ 10,000,000 and it expects to have a total assets turnover ratio of 2.0. Under these
conditions, the tax rate will be 34 percent. If the changes are made, what return on equity will the
company earn? Ans: 23.1%

Problem 9: Using the following data, complete the balance sheet given below:

Debt ratio: 50%

Quick Ratio: 0.8

Total assets turnover: 1.5 times

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Ratio Analysis Numerical

Days sales outstanding: 36 days (360 days in a year)

Gross profit margin: 25%

Sales/Inventory: 5 times

Balance Sheet

Liability Amount Assets Amount

Account Payable ………… Cash ………..
Long-term debt 40,000 Account receivable ………..
Common stock ………… Inventories ………..
Retained earnings 65,000 Fixed asset …………
Total Liability and Equity $200,000 Total Assets $200,000
Ans: 60000, 35000, 18000, 30000, 60000, 92000

Problem 10: Complete the 2014 balance sheet for Royal Industries using the information that follows it.

Balance sheet

Liability Amount Assets Amount

Account Payable $120,000 Cash $32,720
Notes payable …………….. Marketable securities 25,000
Accruals 20,000 Account receivables …………
Long term debt ………… Inventories ………….
Shareholders’ equity 600,000 Net Fixed asset …………
Total Liability and Equity Total Assets

Additional information:

Sales: $1800, 000

Gross profit margin: 25%

Inventory turnover ratio: 6.0

Average collection period: 40 days (360 days in a year)

The current ratio: 1.6

Total assets turnover ratio: 1.2

The debt ratio: 60 %

Ans: 161700, 598300, 200000, 225000,1017280

Problem 11:

a. A KBC supplier has a total debt ratio of 0.62. What is its debt-equity ratio? What is its equity
multiplier?
b. Nepal barstool has an equity multiplier of 2.4. The company’s assets are financed with some
combination of long-term debt and common equity. What is the company’s debt ratio?

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Ratio Analysis Numerical

c. Valley Dealers has ROA of 10 percent, a profit margin of 2 percent and return on equity equal to
15 percent. What is the company’s total assets turnover? What is firm’s equity multiplier?
Ans: 1.63x, 2.63x, 58.33%, 5x, 1.5x

Problem 12:

a. SN Enterprises had debt-equity ratio of 1.10 Return on assets is 8.4 percent, and total equity is
$440,000. What is the equity multiplier? Return on equity? Net income?
b. NS Inc. has sales of $2,300 million, total assets of $1,020 million, and debt-equity ratio of 1. If its
return on equity is 18 percent, what is its net income?

Ans: 2.1 times, 17.64%, $77616, $91.8 million

Problem 13(Assignment) 1: Following are the data available for Mercantile Computer and Industry
average. You are required to:

a. Calculate the indicated ratios for Mercantile Computer

b. Calculate ROE using Du-Pont equation for Mercantile Computer
c. Assess the strengths and weaknesses of Mercantile Computer.

Balance Sheet of Mercantile Computer as on December 31, 2015

Liabilities $ Assets $
Accounts payable 64,500 Cash 38,750
Notes Payable 42,000 Receivables 168,000
Other current liabilities 58,500 Inventory 120,750
Total current liabilities 165,000 Total current assets 327,500
Long term debt 128,250 Net fixed assets 146,250
Common equity 180,500
Total Liabilities and Equity 473,750 Total assets 473,750

Income statement of Mercantile Computer for the year ended December 31, 2015

Amount ($)
Sales Revenue 803,750
Less: Cost of goods sold
Materials 358,500
Labor 226,500
Heat, light and power 34,000
Indirect labor 56,500
Depreciation 20,750 696,250
Gross profit 107,500
Less: Selling expenses 57,500
General expenses 15,000 72,500
EBIT 35,000
Less: Interest expenses 12,250
EBT 22,750
Less: Tax at 40 % of 22,750 (9,100)
Net Income after taxes 13,650

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Ratio Analysis Numerical

Industry average

Current ratio: 2 times

Days Sales Outstanding: 35 days

Inventory turnover ratio (Sales/inventory):6.7 times

Total assets turnover: 3 times

Profit margin 1.2 %

Return on assets 3.6%

Return on equity: 9 %

Debt ratio: 60%

Problem 14: Argent Corporation has $60 million in current liabilities, $150 million in total liabilities, and
$210 million in total common equity; Argent has no preferred stock. Argent’s total debt is $120 million.
What is the debt to assets ratio? What is the debt to equity ratio? Ans: 33.33%, 57.14%

Problem 15.The following data applies to Jacobus and Associates (millions of dollars):

Cash and marketable securities: $100

Fixed assets: $283.5

Sales: $1,000

Net Income: $50

Quick ratio: 2.0X

Current ratio: 3.0X

DSO: 40.55 days (365 days in a year)

ROE: 12%

Jacobus has no preferred stock – only common equity, current liabilities, and long term debt.

a. Find Jacobus’s (1) Account receivable (2) Current liabilities, (3) current assets (4) total assets, (5)
ROA (6) common equity and (7) long-term debt.
b. In part a, you should have found Jacobus’s account receivable = $111.11 million. If Jacobus could
reduce its DSO from 40.55 days to 30.4 days while holding other things constant, how much
cash would it generate? If this cash were used to buy back common stock (at book value), thus
reducing the amount of common equity, how would this affect (1) the ROE (2) the ROA, and (3)
Total debt/Total assets ratio?

Ans; $111.11, 105.5, 316.5, 600, 8.33%, $416.67,77.83, 27.83 12.86%, 8.74%, 32.0%

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Ratio Analysis Numerical

Problem 16: (IUKL 2016 June/Sept) Mini case

Starbucks Corporation and McDonald’s Corporation financial statements and stock prices:

Star Bucks ($) McDonalds($)

Income Statement
Period Ending 27-Sep-09 31-Dec-08
Total Revenue 9,774,600.00 22,744,700.00
Cost of Revenue 4,324,900.00 13,952,900.00
Gross profit 5,449,700.00 8,791,800.00
Total operating Expenses 4,887,700.00 1,950,800.00
Operating income or loss 562,000.00 6,841,000.00
Income from continuing Operations
Total other income/expenses Net 36,300.00 -354,000.00
Earnings Before Interest And Taxes 598,300.00 6,487,000.00
Interest Expenses 39,100.00 0.00
Income before tax 559,200.00 6,487,0000.00
Income Tax expense 168,400.00 1,936,000.00
Net Income 390,800.00 4,551,000.00

Balance Sheet
Period Ending 27-sep-09 31-Dec-08
Assets
Cash & Cash Equivalents 599,800.00 1,796,000.00
Account receivable 557,600.00 1,060,400.00
Inventories 664,900.00 106,200.00
Other current assets 213,500.00 453,700.00
Total Current Assets 2,035,800.00 3,416,300.00
Long Term Investment 4,23,500.00 1,212,700.00
Property Plant & Equipment 2,536,400.00 21,531,500.00
Good will 0.00 2,425,200.00
Other Assets 581,100.00 1,639,200.00
Total Assets 5,576,800.00 30,224,900.00

Liabilities
Account Payable 1,192,100.00 2,970,600.00
Short/current term debt 200.00 18,100.00
Other current liabilities 388,700.00 0.00
Total current liabilities 1,581,000.00 2,988,700.00
Long Term Debt 549,300.00 10,560,300.00
Other long Term Liabilities 400,800.00 1,363,100.00
Deferred long term liability charges 0.00 1,278,900.00
Total liabilities 2,531,100.00 16,191,000.00
Total Stockholder Equity 3,0457,00.00 14,033,900.00
Total Liabilities & Owner’s Equity 5,576,800.00 30,224,900.00

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Ratio Analysis Numerical

a. Compute the financial ratios for both firms and evaluate the relative performance of the two
firms in the following areas:
i. Liquidity
j. Asset-management efficiency
k. Financial practices (capital structure)
l. Profitability
b. Based on the above analysis, provide your personal assessment of the two firm’s past
performance.

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