Boston Chicken’s ROA indicates that the company has successfully in using asset to generate earning. The company ‘s ROA increased significantly in Year 14, experience slightly decline in year 15 but still maintain substantially higher level than Year 13. The increase in ROA is primary due to the high percentage of earning in Year 14 and Year 15. However, the large profit margins in all year were offset by a slower Total Asset Turnover. It probably due to the company acquired new fixed asset to anticipate the growth of the operation. Boston has issued long-term debt cause the ROCE ratio increase in Year 14 to 9.1%. In year 15, Boston issues new common stock to finance area developer to operation their business slower ROCE ratio. The short-term liquidity risk of Boston is moderate. Its current ratio is just above 1.0 and its quick ratio below 1.0 but both ratios increase over the three years period. Both ratio experienced substantially increase in year 15 because of the increase in cash relative to issuing common stock and long-term debt. The extremely high current ratio is result from the substantial cash sitting in cash account. The company is to anticipate borrowing this money to area developer for the growth of the company. The operating cash flow to current liabilities ratios are well above the 40% percent threshold for a healthy company. The company did not have much short-term liquidity risk. Boston’s long term solvency risk increased during the three-year period. Its debt-to-equity and long-term debt ratio has increased substantially in Year 14 and Year 15. And the Cash flow from Operation to Long term debt decline sharply in Year 14 and Year 15 due to the increase in the amount of long-term debt. Its ratio is at the bottom line of healthy company. Its interest ...