over the five year period of analysis; however, the ratio remained high. The annual coverage ratios were as follows; 1986 369 percent; 1987 354 percent; 1988 342 percent; 1989 273 percent; and 1990 217 percent (Mulqueen, 1991). The company's current ratio remained fluctuated in a narrow range over the 1986 1988 time period; however, the ratio improved significantly in 1989 and 1990. The annual ratios were as follows: 1986 .837:1; 1987 .816:1; 1988 .823:1; 1989 .936:1; and 1990 .989:1 (calculated from data obtained from Mulqueen, 1991).
Leverage. The company's long term debt to equity ratio fluctuated within an approximate five percent range over the 1986 1990 time period. The annual ratios were as follows: 1986 37.9 percent; 1987 37.2 percent; 1988 38.0 percent; 1989 34.8 percent; and 1990 39.5 percent (Mulqueen, 1991). The proportion of net profits paid out as dividends increased 10.9 percent over the five year period of analysis. The lowest payout rate, however, was recorded in 1987, while the highest payout rate was recorded in 1989. The annual payout proportions were as follows; 1986 64.0 percent; 1987 63.0 percent; 1988 69.0 percent; 1989 77.0 percent; and 1990 71.0 percent (Mulqueen, 1991).
Profitability. Net profits increased 17.2 percent over the five year period of analysis. Annual net profits were as follows: 1986 $1.0 billion; 1987; $1.1 billion; 1988 $1.0 billion; 1989 $1.2 billion; and 1990 $1.2 billion (Mulqueen, 1991). The net profit margin (proportion of sales fluctuated over a narrow margin over the 1986 1989 time period; however, the margin decreased by a greater amount in 1990. The annual net profit margins were as follows; 1986 7.3 percent; 1987 7.4 percent; 1988 6.8 percent; 1989 7.2 percent; and 1990 6.5 percent (Mulqueen, 1991). Earnings on total capital were 8.5 percent in 1986, 1987, and 1990 (Mulqueen, 1991). In 1988, earnings on total capital dropped to ...