Profitability ratios indicates how effectively the total firm is being managed. As indicated in graph #1, the return on sales has decreased over the years. However, the return is still acceptable, as the American industry average is approximately 5 percent (0.05). In 1991, the return on sales ratio was 0.07, or 7 percent. This can be compared to the 10 percent ratio which was achieved one year earlier (1990). Obviously, sales are not keeping-up with the net earnings of the corporation, and there is a significant decrease, but I do not think that a one-year fluctuation is anything to worry about. This decrease could be explained by temporary business problems, and external sources such as economic depression. Furthermore, the return on investment decreased from 0.10 in 1990 to 0.07 in 1991. That show us that the company should try to work on its efficiency and try to optimize the usage of assets.