Ratio Liquidity Ratio Current ratio Activity Ratio Inventory turnover Leverage ratio Debt ratio % Debt to equity % Profitability Ratio Net profit margin ROA ROE Market Ratio EPS P/F ratio Formula Current assets / Current liabilities COGS/Inventory Total liabilities/ Total assets Total liabilities/Stockholders' equity Net earning/ net sales Net income/ Total assets Net income/ Stockholders' equity Net earning/Average share outstanding Market price of common stock/ FPS 2021 1,06 7,75 0,61 1,62 0,08 0,04 0,10 $14.56 10.6 2020 1,05 9,66 0,60 1,58 0,06817 0,03773 0,10 $13.42 9.20
Ratio Liquidity Ratio Current ratio Activity Ratio Inventory turnover Leverage ratio Debt ratio % Debt to equity % Profitability Ratio Net profit margin ROA ROE Market Ratio EPS P/F ratio Formula Current assets / Current liabilities COGS/Inventory Total liabilities/ Total assets Total liabilities/Stockholders' equity Net earning/ net sales Net income/ Total assets Net income/ Stockholders' equity Net earning/Average share outstanding Market price of common stock/ FPS 2021 1,06 7,75 0,61 1,62 0,08 0,04 0,10 $14.56 10.6 2020 1,05 9,66 0,60 1,58 0,06817 0,03773 0,10 $13.42 9.20
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
Problem 3SEB
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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According to the following ratio of Toyota critically assess the business financial condition of Toyota
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