Financial Ratios : Current Ratio

1551 Words Sep 20th, 2015 7 Pages
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=Total…

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