Year | 2008 | 2009 | 2010 | % Cost of sale | 26.3% | 27% | 63.2% | Gross profit margin | 73.7% | 73.0% | 36.8% | EBIT margin | 3.2% | 7.1% | 17% | Net profit margin | 2.8% | 6.0% | 14.3% | Return on equity | 11.5% | 27.2% | 94.1% | Return on assets | 10.4% | 22.3% | 49% | Current ratio | 5.2 | 3.3 | 1.4 | Quick ratio | 5.12 | 2.07 | 1.01 |

Based on the data in case Exhibit 9, our assessment about Sift’s financial performance is that company had managed and controlled the assets and liabilities & Stockholder Equity very successful and effective.
Firstly, from the Income statement of Sift from 2008 to 2010, the net sales has a big jump, more than 4 times (220 to 961thousand dollars ) over 3 years. In additions, the net income also have the same trend and reached the highest point in 2010 at 137 thousand dollars.This resulted to the Net profit margin index, which is increased by 11.5% from 2.8%(2008) to 14.3%(2010).However, the gross profit margin of Sift was maintained 73% in 2008 and 2009, but decreased enormously to 36.8% in the last year. The reason for that is the Cost of goods sold is added Labor expense, which was moved form the Operating Expense, thus it make the % COGS in Net sales grown to 63.2% in 2010. It means that Sift still have a high percentage of revenues available to cover operating expense and yield a profit. The EBIT margin have a positive signal which keep growing and got 17% in 2010.
The Balance Sheet of Sift shown a big development of company with the Total assets has about more than 4 times($279669) the first year($29507). ROE and ROA index has a stable increasing trend and very impressive in 2010 with 94% ROE and 49% in ROA. It’s sure that Sift Cupcake and Desert Bar company is a good choice for the investor. Another index that investors also consider is liquidity ratios: Current ratio and quick ratio. Even having a