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Kelly Services Final

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Kelly Services, Inc.

Group 7

Has Kelly Services Inc. underperformed or outperformed its competitors? On what dimensions?

Financial ratios are great indicators to find a firm’s performance and financial situation. Most of the ratios are able to be calculated through the use of financial statements provided by the firm itself. They show the relationship between two or more financial variables that can be used to analyze trends and to compare the firm’s financials with other companies to further come up with market values or discount rates, etc.

After coming up with all of the financial ratios the financial statements are able to provide, management can figure out the trend analysis, cross-sectional analysis and industry comparables analysis.

Profitability ratios show how profitable and efficiently the company generates profits on its sales. They also indicate how efficiently a company controls its expenses, as well as how efficiently a company uses its assets in producing sales.

Looking at the financial statements in Exhibit 4, we were able to provide a concise analysis of the profitability ratios of Kelly Services Inc. while comparing them to the profitability ratios of Olsten.

|Kelly Services Inc. | | |Olsten | | |
| | | | | | |
|Profitability Ratios: |1984 |1985 |Profitability Ratios: |1984 |1985 |
|ROS: (NI/Sales) |3.60% |3.72% |ROS: |2.74% |2.78% |
|ROA: (NI/Assets) |17.93%

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