8 9 0 Liquidity Ratios 41 Current Ratio 916 Formula Total Current Assets/Total Current Liabilities (Cash & Cash Equivalents + Accounts Receivable)/Total Current Liabilities Coopie Awards Inc. Year 1 Coopie Awards Inc. Year 2 Competition Ratio Year 1 Ratio Benchmarks 15.00 Greater than 1. Ideally greater than 1, but likely will be less 12.00 than 1. 42 Acid Test Ratio 43 44 Asset Management Ratio 45 Inventory Turnover 46 Accounts Receivable turnover 47 48 Solvency Ratios 49 Debt ratio Cost of Goods Sold/beginning year inv + ending year inv/ 2 Sales/beginning year A/R + ending year A/R /2 Total Liabilities/Total Assets Operating Income/Interest Expense Depends on industry, 2.61 higher is better 3.20 48.00% Less than 67% Higher the better, unless interest exp is 51.71 0. 50 Times Interest Earned Ration 51 52 Profitability Ratios 53 Gross Profit Percent 54 Return on Net Sales: 55 Earnings Per Share (EPS) 56 57 Market Analysis Gross Margin/Total Revenue Net Earnings/Total Sales Depends on industry, 65.67% higher is better Depends on industry, 23.92% higher is better Depends on company. Would want to see stay stable or increase, $1.27 not decrease. 58 Price Earning Ratio (share price is $10 at year end) Share Price/E.P.S. Depends on company. Remaining steady is 7.87 good.