Financial Ratios : Current Ratio

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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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