Financial Ratios : Current Ratio
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=SalesGross Profit=65,49234,201=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
(8,3046,214)/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=65,49234,201
9,112/ (65,49234,201) = 0.2912
14. Debt to Equity ratio
Debt to Equity ratio= Total liabilities/Total Equity
Total Equity=Total…

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