Financial Ratios
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
AB Answers
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Hello Guest
Login
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Education > College and University > Financial Ratios
Financial Ratios
Posted: Apr 19, 2010 |Comments: 0
|
]]>
Question 1:
balance sheet
2008
Assets
Current assets:
Cash and marketable securities
$421
Accounts receivable
1109
Inventory
1,760
Total
3,290
Fixed assets:
Gross plant and equipment
5812
Less: Depreciation
840
Net plant and equipment
4982
Other long-term assets
892
Total
5864
Total assets
$9,154
Liabilities and Equity
Current liabilities:
Accrued wages and taxes
$316
Accounts payable
867
Notes payable
872
Total
2,055
Long-term debt:
3,090
Stockholders’ equity:
Preferred stock (25 million shares)
60
Common stock and paid-in surplus (200 million shares)
637
Retained earnings
3,312
Total
4,009
Total liabilities and equity
$9,154
income statement
Net sales
$4,980
Less: Cost of goods sold
2371
Gross profits
2,609
Less: Depreciation
200
Earnings before interest and taxes (EBIT)
2,409
Less: Interest
315
Earnings before taxes (EBT)
2,094
Less: Taxes
767
Net income
$1,327
Less: Preferred stock dividends
$60
Net income available to common stock holders
1,267
Less: Common stock dividends
395
Addition to retained earnings
$872
Earnings per share (EPS)
$6,335
Dividends per share (DPS)
$1,975
Book value per share (BVPS)
$19,745
Market value (price) per share (MVPS)
$26,850.00
Question 2:
Financial ratios:
The table below summarises the financial ratios calculated:
Garners’ Platoon Mental Health Care, INC.
2008
Industry
Current ratio
1.60097324
2.0times
Quick ratio
0.74452555
1.2times
Cash ratio
0.13624595
0.25times
Inventory turnover ratio
1.34715909
2.50times
Day’s sale’s in inventory
270.940531
146.00days
Average collection period
81.2821285
91.00days
Average payment period
133.469
100.00days
Fixed asset turnover ratio
0.84924966
1.25times
Sales to working capital
2.48751249
4.00times
Total asset turnover ratio
0.54402447
0.50times
Capital intensity ratio
1.83815261
2.00times
Debt ratio
56%
50.00%
Debt-to-equity ratio
0.33755735
1.00times
Equity multiplier
13.133429
2.00times
Times interest earned
7.64761905
7.25times
Cash coverage ratio
8.21
8.00times
Profit margin
27%
18.75%
Basic earnings power ratio
26%
19.90%
ROA
14%
9.38%
ROE
190%
18.75%
Dividend payout ratio
31%
35%
Market-to-book ratio
1.35983793
1.300times
PE ratio
4.23835833
4.100times
Sustainable growth is determined by multiplying return on equity by th retention ration, the retention ratio is determined by the difference between earnings per share and dividends per share by earnings per share. Retention ratio is = 69% and ROE = 190%, this means that sustainable growth =131.03%
Question 3:
DuPont system:
ROE = profit margin X total asset turnover X Equity Multiplier
ROE = 190%
Expenses:
Expenses management is reflected by the profit margin, the firm’s profit margin is 27% while the industry value is 18.75%, and this means that the firm manages its expenses properly.
Debt:
Debt management is reflected by the equity multiplier, the equity multiplier for the firm is 13.13 while the industry value is 2, and this means that the firm finances more using debt. This is also reflected by the debt equity ratio whose value is 0.337 while the industry value is 1.
Assets:
Asset management is reflected by the total asset turnover, the value for the firm is 0.54402447 times while the industry value is 0.50 times, and given that the firm’s value is greater than the industry value then the conclusion is that the firm manages its assets properly. This is also reflected by the ROA where the value is 14% for the firm and 9.38% for the industry.
Retrieved from “http://www.articlesbase.com/college-and-university-articles/financial-ratios-2178380.html”
(ArticlesBase SC #2178380)
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
Charles Kelly -
About the Author:
Author is associated with SuperiorPapers.us which is a global Research Papers and Term Papers Writing Company. If you would like help in Research Papers and Term Paper Help you can visit Term Paper Help, Non-Plagiarized Essays and College Essays.
]]>
Questions and Answers
Ask our experts your College and University related questions here…200 Characters left
How to analyze financial statements of banks/ please tell me all the ratios with formulas and interpretation of ratios? i want to know what each and every indicates?
What are some good topics for research papers ?
What are the elements of a research paper ?
Rate this Article
vote(s)
0 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Source: http://www.articlesbase.com/college-and-university-articles/financial-ratios-2178380.html
Article Tags:
custom research papers, free essays, free research papers, essay help, essay services, research papers, term papers, term paper help, custom papers, custom essay, buy research papers, dissertation, thesis, buy essays, buy term papers, help writing essays
Latest College and University Articles
More from Charles Kelly
Learn how to Write an Essay – First Draft, Revisions and Proofreading
Learn how to Write an Essay – First Draft, Revisions and Proofreading (01:38)
Learn how to Write an Essay – Thesis, Research and Outline
Learn how to Write an Essay – Thesis, Research and Outline (02:39)
Learn how to Write an Essay – Choosing Genre, Topic and Scope
Learn how to Write an Essay – Choosing Genre, Topic and Scope (01:17)
Learn about Different Types of College Essays
Learn about Different Types of College Essays (06:26)
Learn how to Write a College Essay
Learn how to Write a College Essay in this video. (00:48)
Features Of A Qualified Professional Custom Writing Essay Writer
Sometimes students are required to do complex assignments or given a very short time to complete and submit their written assignments. Teachers have the believe that students should be versant with all the daily occurrences in the world, have access to all information and be able to complete any assignment.
By:
Charles Millerl
Writing>
Publishingl
Nov 13, 2010
Lecturers and instructors feel that students should be eligible to confront to all kinds of hard times of writing term papers and therefore they give them a good time to participate in competition of modernism and advancement. Writing free academic paper remains a difficult task to many students since it demands not only knowledge and eloquence in free papers but also personal skills in term paper writing.
By:
Charles Millerl
Writing>
Article Marketingl
Oct 29, 2010
This is an online writing company that deals with freelance wring services. We offer high quality freelance writing to students and professionals from all the regions of the world.
By:
Charles Millerl
Writingl
Dec 13, 2010
Market Research Proposal – A Detailed Marketing Research Plan
Cheung Bei Computer Industrial Company Limited (abbreviated as CB) is a Chinese based company that specialises in the production of computers and computer related products. CB has also been producing a particular notebook computer known as DIL. In order to ensure that its clients are satisfied with the product,
By:
Yvonne Millerl
Business>
Strategic Planningl
Feb 03, 2010
lViews: 2,910
Custom Written Topics In Education
In their course of study, students often write different types of education papers. These include education essay, education research paper, education dissertation, and education thesis.
By:
Charles Millerl
Writing>
Publishingl
Oct 28, 2010
In order to find biology papers of high quality, students should seek professional help from custom biology paper writing companies. Quality writing.com is a professional company with experienced writers in writing custom biology papers, biology essay, biology term paper, biology research paper, biology thesis, and biology dissertation.
By:
Charles Millerl
Advertising>
Online Promotionl
Oct 27, 2010
Where will I find help from to write my custom papers? Which is the legitimate online writing company that can help me write my custom papers?
By:
Charles Millerl
Education>
College and Universityl
Dec 10, 2010
Tired Of Writing Term Papers? Here Is The Solution
If you are tired of writing term papers, essays, dissertation and thesis? Or you are seeking for any kind help in your writing work? So here comes an expert (or a group of expert literary) who can not only help you in completing your writing task also give the perfect information about that task. Usually writing essays, thesis, dissertation etc are of the crucial part in student’s life which takes lot of research work and stress to complete it. Termpaperwrite.org is a best place for students whe
By:
Peter Macl
Educationl
Sep 22, 2009
lViews: 147
Mass Communication Colleges in Delhi – a Dream Educational Destination for the Students to Excel
It seems now to be counted in the days of yore when students were found running to enroll their names for a technical degree right after their higher secondary of 12th board examinations results are out. Instead on this date; there are many students with similar minds that are showing their insatiable curiosities to do courses in journalism in some of the top mass communication colleges in Delhi for pursuing a Bachelor’s degree.
By:
Sanjayl
Education>
College and Universityl
Jan 24, 2011
MBA and Engineering College Rankings Will Surely Assist You Finding a Pertinent Institute
The need for higher education is becoming dominant in these times of advanced technologies and avant-garde contrivances. This can be witnessed from the growing number of applications that MBA and engineering colleges receive virtually in every nook and corner of the globe.
By:
Sanjayl
Education>
College and Universityl
Jan 24, 2011
Department of Chemistry, Hazara university, pakistan
Chemistry is one of the raw sciences that mint with the scrutiny of compositions and properties of entity. It is the ability that is poised strategically between the life sciences and energetic sciences.
By:
Muhammad Nisar Khanl
Education>
College and Universityl
Jan 24, 2011
Just like any other academic paper, case study writing requires a high level of dedication not to mention time allocation and extensive research to successfully complete. In this case, the case study writer must first understand the contents of the case study both extensively and substantively.
By:
Charles Millerl
Education>
College and Universityl
Jan 24, 2011
The Importance of Proofreading Academic Papers
Many students neglect the aspect of proofreading academic papers once they complete writing one. They spend hours and days writing them putting massive efforts and at the end become very complacent when it comes to revising the work. This is one of the reasons they fail to get good grades and have to pay in terms of rejection and other problems.
By:
Brian Johnl
Education>
College and Universityl
Jan 24, 2011
A Million Dollar Academic Essay
Writing essays is probably one of the most tiring academic activities but there are no options and you have to do it no matter what if you are to complete your studies. Now the question is everyone writes essays and some of them are really good while some are bad, some are average and some are really exceptional, what makes an essay a million dollar essay? When we say exceptionally well most of the people will naturally…..
By:
Brian Johnl
Education>
College and Universityl
Jan 24, 2011
Writing good case study writing depends with the amount of work assigned and skills of the writer. Our essay writing company is the best case study writing site which guarantees you best papers.
By:
Charles Millerl
Education>
College and Universityl
Jan 24, 2011
Case study writing is among the common assignments that college and university students tackle. It is vital to have a better understanding of the subject case prior to case study writing.
By:
Charles Millerl
Education>
College and Universityl
Jan 24, 2011
In 600 BC the Greek set trading posts in the east of the Adriatic coast, over time they founded new colonies and influenced the native tribes. In 3 BC Rome conquered the western part of the Adriatic coast and further occupied other regions because they believed that the Illyrians were disrupting trade in these regions.
By:
Charles Kellyl
Education>
Historyl
Apr 29, 2010
Design Environment And Principles In Businesses
Woolworths specializes in the sale of products in supermarkets. It operates in a very competitive environment where many companies are in the same field. Despite the odds, Woolworths has designed new models that have effectively improved its profitability, market share and expansion
By:
Charles Kellyl
Education>
International Studiesl
Apr 29, 2010
Design Environment And Principles In Businesses
Woolworths specializes in the sale of products in supermarkets. It operates in a very competitive environment where many companies are in the same field. Despite the odds, Woolworths has designed new models that have effectively improved its profitability, market share and expansion
By:
Charles Kellyl
Education>
International Studiesl
Apr 29, 2010
Why Firms Merge And The Problem They Cause:
According to Fairburn and Kay (1989) mergers can be dated back in the 1920′s, from the past it is evident that mergers may cause more harm than bring the advantages they bring to the merging firms, the merging and acquisition activities have increased in the past and firms merge because they think
By:
Charles Kellyl
Education>
Historyl
Apr 29, 2010
lViews: 461
Sutherland Edwin states that white collar crimes can be defined as those crimes that are committed by people of high status quo in the course of their occupation; these crimes include such acts as bribes, frauds, embezzlement of funds, forgery and insider trade.
By:
Charles Kellyl
Law>
National, State, Locall
Apr 29, 2010
lViews: 379
Genetically modified foods are different from none genetically modified foods
Whether genetically modified foods are different from none genetically modified foods: analysis form assumption: Before addressing the question concerning genetically modified foods and none genetically modified foods, it is good to know that type one error indicates that there is rejection of the true stated hypothesis without proper analysis of the fact
By:
Charles Kellyl
Education>
Sciencel
Apr 29, 2010
Ways That Assists In Working Or Explaining A Given Diffic
Heuristic refers to ways that assists in working or explaining a given difficulty, usually unofficial. It is mainly utilized for a technique that would give a more reasonable explanation to the best available response. They involve making well-informed deductions, instinctive ruling or use of logic.
By:
Charles Kellyl
Education>
Online Educationl
Apr 29, 2010
Water pollution occurs when water bodies are seriously affected, itcan be defined as the presence of foreign materials either in solid or in solution form in water sources. The presence of any unwanted substances in water makes it not safe for drinking, navigation, and recreational uses i.e. swimming waterskiing, and angling.
By:
Charles Kellyl
News and Society>
Environmentl
Apr 29, 2010
lViews: 224
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Charles Kelly has 500 articles online
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
ADHD
Childhood Education
College and University
History
Homeschooling
International Studies
K-12 Education
Languages
Learning Disabilities
Online Education
Science
Tutoring
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.