Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd
Upload
342 views

04 Task Performance 1 FM

The document provides a financial ratios analysis for a company. It lists 14 financial ratios calculated from the company's financial statements and compares the results to industry averages to determine if each ratio is low, high, or okay. The analysis found that most of the company's ratios, such as current ratio, quick ratio, inventory turnover, days sales outstanding, total assets turnover, times-interest-earned, operating margin, profit margin, return on total assets, and return on common equity were low compared to industry averages. The only ratio that was high was the total debt to total capital ratio.

Uploaded by

Edlyn Tejano
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
342 views

04 Task Performance 1 FM

The document provides a financial ratios analysis for a company. It lists 14 financial ratios calculated from the company's financial statements and compares the results to industry averages to determine if each ratio is low, high, or okay. The analysis found that most of the company's ratios, such as current ratio, quick ratio, inventory turnover, days sales outstanding, total assets turnover, times-interest-earned, operating margin, profit margin, return on total assets, and return on common equity were low compared to industry averages. The only ratio that was high was the total debt to total capital ratio.

Uploaded by

Edlyn Tejano
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

BM1904

NAME: Angulo, Richelle Mae D. DATE: 03/21/21 SCORE:

a
Financial Ratios (14 items x 10 points)

vi
Compute the following financial ratios and interpret the results (Low, High, OK) based on the given industry averages. Write your answers on the
spaces provided.

e d
Industry
Ratio Formula Calculation Comment

ar
Average
= 1,000,000

sh
Current = Current Assets 310,000 4.2 LOW
Current Liabilities = 3.23
= 1,000,000 – 385,000 = 615,000

as
Quick = Current Assets−Inventories 310,000 310,000 2.2 LOW
Current Liabilities = 1.98

w
= 3,000,000
Inventory turnover = Sales 385,000 10.9 LOW

m e
Inventories = 7.79

Days sales outstanding = co rc


Receivables
= 375,000
3,000,000/365 36 days LOW
o. ou
Annual Sales/365 = 45.62 or 46 days
= 3,000,000
er res

Fixed assets turnover = Sales 1,000,000 2.8 HIGH


Net Fixed Assets =3
= 3,000,000
se dy

Total assets turnover = Sales 2,000,000 1.8 LOW


Total Assets = 1.5
ur tu

= 860,000 = 860,000
Total debt to = Total Debt 860,000 + 940,000 1,800,000 36.4% HIGH
s

total capital Total Debt + Equity = 47.78%


H
is

04 Task Performance 1 *Property of STI


Th

Page 1 of 2

This study source was downloaded by 100000785441686 from CourseHero.com on 11-10-2021 05:39:51 GMT -06:00
Industry
Ratio Formula Calculation Comment
Average
= 283,800
Times-interest-earned = EBIT 88,000 6.0 LOW

a
Interest Charges = 3.23

vi
= 283,800
Operating margin = EBIT 3,000,000 10.0% LOW
Sales = 9.46%

d
= 117,500

e
Profit margin = Net Income 3,000,000 5.0% LOW

ar
Sales = 3.92%
= 117,500

sh
Return on total assets = Net Income 2,000,000 9.0% LOW
Total Assets = 5.88%

as
= 117,500
Return on = Net Income 940,000 15.0% LOW

w
common equity Common Equity = 12.5%
=283800(1 - 40%) = 170,280
Return on invested = EBIT(1−T) 130,000 130,000 10.8% LOW

m e
capital Total Invested Capital = 1.31%

co rc = 283,800
o. ou
Basic earning power = EBIT 2,000,000 18.0% LOW
Total Assets = 14.19%
er res
se dy
ur tus
H
is
Th

This study source was downloaded by 100000785441686 from CourseHero.com on 11-10-2021 05:39:51 GMT -06:00
Powered by TCPDF (www.tcpdf.org)

You might also like