Financial Ratios Current Ratio - 1551 Words

Financial ratios 1. Current ratio Current ratio=Current Assets/Current Liabilities 18,720 / 17,089=1.0954 2. Quick ratio Quick ratio= (Current Assets – Inventories) / Current Liabilities (18,720 – 3,581)/17,089=0.8859 3. Return on Assets ratio Return on Assets ratio= Net Profit before Tax/Total Assets 34,201/74,638=0.4582 4. Net Profit Margin Net Profit Margin=Net income after taxes/revenue 6,214/65,492=0.0949 5. Accounts Receivable Turnover ratio Accounts Receivable Turnover ratio=Sales/Accounts Receivable 65,492/7,041=9.3015 6. Accounts Payable Turnover Accounts Payable Turnover=Cost of Goods Sold/Accounts payable Cost of Goods Sold=Sales-Gross Profit=65,492-34,201=31,291 31,291/4,451=7.0301 7. Inventory Turnover Inventory Turnover=Cost of Goods sold/Inventory 31,291/3,581=8.7381 8. Sales to Assets ratio Sales to Assets ratio=Sales/Total Assets 65,492/74,638=0.8775 9. Net Margin Net Margin=Net profit before Tax/sales (8,304-6,214)/65,492=0.03191 10. Gross Margin Gross Margin=Gross Profit/Sales 34,201/65,492=0.5222 11. Interest coverage ratio (Times interest earned) Interest coverage ratio=Net Income/Interest Expense 6,178/0 12. Debt ratio Debt ratio= Total liabilities/Total Assets 52,344/74,638=0.7013 13. Operating Margin Ratio Operating Margin ratio=Operating Income/Net sales Net Sales=65,492-34,201 9,112/ (65,492-34,201) = 0.2912 14. Debt to Equity ratio Debt to Equity ratio= Total liabilities/Total Equity Total Equity=TotalShow MoreRelatedAt Universal Health Services, Inc.1526 Words   |  7 PagesInc. we want to evaluate our financial condition, so that we can assess how we are doing compared to our competitors. We also want to create a strategic financial plan for the next three years, so that we can continue to grow stockholder’s equity and to keep up and even take over our competition. One way to analyze our financial condition is through financial ratios. â€Å"Financial ratios are often used in benchmarking. Comparisons are made between the financial ratios of a firm and those of its peersRead MoreFinancial Analysis : Operations Management1563 Words   |  7 Pagesensure that all of the business operations are efficiently and effectively executed by using the least amount of resources but maintaining the quality standard of the company. Financial analysis plays a crucial part in maintaining a successful and efficient operations management in a company. There are multiple financial ratios which are very helpful to understand the proper management and execution of different sectors within operations management to decrease the cost and expenditures of the companyRead MoreCase Study Analysis : Starbucks Corporation1016 Words   |  5 Pagesbeverages and fresh food items, throughout all company-operated stores. The consolidated financial statements reflect the financial position and operating results of Starbucks Corporation. Ratio Analysis was used to analyze the performance of Starbucks using the financial ratios of liquidity, solvency, and profitability. Calculations and amounts were provided in the excel spreadsheet labeled (Financial Ratios). All data provided were conducted for the balance sheet and income statement accounts overRead MoreMcDonalds Wendys Financial Statement Comparison Essay1693 Words   |  7 PagesMcDonalds Wendys Financial Statement Comparison Financial Statement Analysis Project The two companies that I will be comparing in this project are McDonalds and Wendys. Both of these companies are competitors in the same industry. I am using the information from their 2005 Financial Statements. Debt-to-Assets Ratio When comparing the debt-to-assets ratio of McDonalds and Wendys, you have to divide the firms total liabilities by their total assets. EssentiallyRead MoreFinancial Data And Common Stock Features Of Financial Ratios815 Words   |  4 PagesBeaver et al. (1970, pp. 654-682) point out that financial researchers use financial ratios to examine the relation between financial data and common stock features. The analysis in this paper is focus on the usefulness of financial ratios, taking data from stock market to assist the judgment of whether ratios show the real variation of company business. Put it in detail, this paper adopts quantitative research method mainly; calculating the different ratios in different industry companies, and then comparingRead MoreFinancial Ratios And The Performance Of Your Business And Identify Potential Problems1282 Words   |  6 Pages Financial ratios are a good way to assess the performance of your business and identify potential problems. The ratios are used to measure factors such as profitability, solvency, efficiency, and debt load of your business. Financial ratios are used by company financial situation and also how this company is performing. Commercial ratios are meters of a making mercantile assignment and moreover how this company is performing. Unexcelled productive ratios are deduced confer with from an everlastingRead MoreFinancial Ratio Analysis : Coca Cola Company1608 Words   |  7 Pages Financial ratio, also known as accounting ratio, entails a relative magnitude of any two values, in this case â€Å"numerical† obtained from a firm’s financial statement. They are basis of valuing a company hence it’s a complex task that requires a critical analysis of various components of financial ratio such as profitability ratio, debt ratio, investment valuation ratio, operating perfor mance ratio, cash flow indicator ratio and liquidity measurement ratio. Therefore, the following financial ratioRead MoreCalculation of Financial Ratios for Google1550 Words   |  7 PagesThe company that I have selected for Financial Ratio analysis is GOOGLE. The Ratios that I am going to analyze are grouped under four main headings: 1) Profitability Ratio 2) Liquidity Ratio 3) Debt Ratio 4) Market Ratio 1. Profitability Ratio - Profitability ratios measure the firm s use of its assets and control of its expenses to generate an acceptable rate of return. a. ROE - Return On Equity - Measures the rate of return on the ownership interest (shareholders equity) of the commonRead More Financial Ratio Analysis Essay1420 Words   |  6 Pagesset of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000. Financial Statement Ratios ProfitabilityRead MoreThe Financial Position Of Melbourne1356 Words   |  6 Pagesanalyse the financial position of Melbourne IT limited through the use of financial ratios, based on the annual report for the periods December 2012 and 2013. Financial ratios are useful since they measure a company’s performance and give an overview of the financial situation. Ratios are also used to analyse trends and to compare a firms financial figures to other competitors within the same industry. There three main ratios analysed are: liquidity, profitability and solvency. The ratio analysis involves