Chapter 3 - Financial Ratios & Common Size Financial Statements - Template

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Iowa State University *

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Course

301

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Finance

Date

Feb 20, 2024

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xlsx

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1

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FIN 301 Chapter 3 - Financial Ratios and Common Size Financial Statements Student Name: Phum Uengaksonsamai Price Sensitivity 0.00% Actual Results Common Size Financial Statements Balance Sheet 2022 2023 2022 2023 Balance Sheet 2022 2023 2022 2023 Cash 9,904 12,006 Accounts Payable 6,974 8,457 Cash 7.1% 7.0% Accounts Payable 5.0% 5.0% Accounts Receivable 8,543 10,828 Notes Payable 7,718 9,784 Accounts Receivable 6.1% 6.3% Notes Payable 5.5% 5.7% Inventory 13,844 17,548 Current Liabilities 14,692 18,241 Inventory 9.9% 10.3% Current Liabilities 10.5% 10.7% Current Assets 32,291 40,381 Current Assets 23.1% 23.6% Long-Term Debt 45,483 57,651 Long-Term Debt 32.5% 33.8% Fixed Assets 119,039 144,325 Total Liabilities 60,174 75,892 Fixed Assets 85.1% 84.5% Total Liabilities 43.0% 44.4% Depreciation (11,494) (13,937) Depreciation -8.2% -8.2% Net Fixed Assets 107,544 130,388 Equity 79,660 94,877 Net Fixed Assets 76.9% 76.4% Equity 57.0% 55.6% Total Assets 139,835 170,769 Total Liabilities/Equity 139,835 170,769 Total Assets 100.0% 100.0% Total Liabilities/Equity 100.0% 100.0% Income Statement 2022 2023 Income Statement 2022 2023 Sales 61,551 74,621 Sales 100.0% 100.0% Cost of Good 35,469 41,827 Cost of Good 57.6% 56.1% Depreciation 11,494 13,937 Depreciation 18.7% 18.7% Earnings before Interest & Taxes 14,588 18,858 Earnings before Interest & Taxes 23.7% 25.3% Interest Paid 2,637 3,341 Interest Paid 4.3% 4.5% Taxable Income 11,951 15,517 Taxable Income 19.4% 20.8% Taxes 2,510 3,259 Taxes 4.1% 4.4% Net Income 9,441 12,258 Net Income (Profit Margin) 15.3% 16.4% Dividends 3,298 4,136 Dividends 5.4% 5.5% Addition to Retained Earnings 6,143 8,122 Addition to Retained Earnings 10.0% 10.9% Select Financial Ratios for 2020 & 2022 Liquidity Ratios Numerator Demoninator Ratio Calculation Current Ratio 2022 32,291 14,692 2.20 Ability to pay our current obligations Current Ratio 2023 40,381 18,241 2.21 Quick Ratio 2022 18,446 14,692 1.26 Ability to pay our current obligations without liquidating inventory Quick Ratio 2023 22,833 18,241 1.25 Long Term Solvency Ratios Numerator Demoninator Ratio Calculation Debt to Equity Ratio 2022 60,174 79,660 0.76 Use of debt to finance assets Debt to Equity Ratio 2023 75,892 94,877 0.80 Profitability Measures Numerator Demoninator % Calculation Profit Margin 2022 9,441 61,551 15.3% Net Income divided by Sales Profitability of our business Profit Margin 2023 12,258 74,621 16.4% Return on Assets 2022 9,441 139,835 6.8% Return generated on the assets of our business Return on Assets 2023 12,258 170,769 7.2% Return on Equity 2022 9,441 79,660 11.9% Return of income to shareholders Return on Equity 2023 12,258 94,877 12.9% Current Assets divided by current liabilities (Current Assets - Inventory) divided by Current Liabilities Total Debt divided by Total Equity Net Income divided by Total Assets Net Income divided by Total Equity
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