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  • Liquidity Ratios: Activity Analysis

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    shara
    16 vues2 pages
    The document defines and explains various financial ratios used to analyze a company's liquidity, profitability, activity, capital structure, and market performance. Specifically, it provides the calculations for current ratio, quick ratio, various profitability ratios like ROA, ROE, operating margin, activity ratios like inventory turnover and receivables turnover, capital structure ratios like debt ratio and times interest earned, and market ratios such as price to earnings, dividend yield, and price to book value.

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    Liquidity Ratios

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    The document defines and explains various financial ratios used to analyze a company's liquidity, profitability, activity, capital structure, and market performance. Specifically, it provides the calculations for current ratio, quick ratio, various profitability ratios like ROA, ROE, operating margin, activity ratios like inventory turnover and receivables turnover, capital structure ratios like debt ratio and times interest earned, and market ratios such as price to earnings, dividend yield, and price to book value.

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    © All Rights Reserved
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    16 vues2 pages

    Liquidity Ratios: Activity Analysis

    Transféré par

    shara
    The document defines and explains various financial ratios used to analyze a company's liquidity, profitability, activity, capital structure, and market performance. Specifically, it provides the calculations for current ratio, quick ratio, various profitability ratios like ROA, ROE, operating margin, activity ratios like inventory turnover and receivables turnover, capital structure ratios like debt ratio and times interest earned, and market ratios such as price to earnings, dividend yield, and price to book value.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 2

    Liquidity Ratios

    Current Ratio = CA/CL

    Quick Ratio = Quick Asset/CL

    Profitability Ratios

    ROA = Net Income/Ave. Total Assets

    ROE = Net Income/Owner’s Equity

    RoIC = Net Income + After Tax Interest Expense


    Total Liab + OE – CL

    Return on Ordinary Shareholders Equity = Net Income – Preferred Dividends


    Ave. Ordinary Shares

    Gross Margin = Gross Income/Sales

    Profit Margin = Net Income/Sales

    Operating Margin = Operating Income/Sales

    EPS = Net Income – Preferred Dividends


    Ave Ordinary Shares

    Activity Analysis
    Asset Turnover = Sales/Asset

    AR Turnover = Sales/Ave. AR

    Day Receivables = AR/Ave. Days Sales

    Ave. Days Sales = Sales/365

    Inventory Turnover = COGS/Ave. Inventory

    Inventory Turnover Period = 365/Inventory Turnover

    Fixed Asset Turnover = COGS/Fixed Asset

    Working Capital Turnover = Sales__________________


    Ave. Working Capital [Beginning WC + Ending WC]/2
    Capital Structure Analysis
    Debt Ratio = Total Debt/Total Asset

    Debt to Equity Ratio = Total Liability/Total Equity

    Debt to Tangible Net Worth = Total Liability__________


    Owner’s Equity – Intangible Asset

    Times Interest Earned = Pretax Income + Interest Expense


    Interest Expense

    Debt Servicing Ratio = Pretax Income + Interest Expense_______________


    Interest Expense + Current Portion of Debt + Revolving Debt

    Market Analysis
    Price to Earnings Ratio = MV of OS/EPS

    Dividend Yield = Annual Dividend


    MV per share price

    Dividend Payout Ratio = Dividend per share


    EPS

    Price to Book Ratio = Market Capitalization______________


    Ordinary Equity + Retained Earnings – Intangible Assets

    EPS = Net Income – Preferred Dividends


    Average OS

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