Can you answer the ratio analysis spreadsheet

MODULE III: FINANCIAL ANALYSIS INTRODUCTION The purpose of financial analysis is evaluate a firm's past, present, and future financial to problem and/or any identify any weakness that could lead to future you strength that the firm might capitalize upon. To do financial analy of the firm's tools, ie, financial ratios. Through financial ratios can have diagnosis financial In addition, when comparing companies of different sizes, ratios provide an objective way of Formula Liquidity Ratios Current assets Cument liabilities Current Ratio urrent assets Inventory) Current liabilities or Acid-Test Ratio Asset Management Ratios Cost of goods sold Inventories Days Sales Outstanding (DSO) Accounts receivable (Annual sales 365) CAverage Collection Period Sales Total assets Total Asset Turnover Debt Management Ratios Total debt Total assets Debt Ratio Total assets Total equity Equity Multiplier Times Interest Earned Ratio Earnings before interest and taxes 4 Interest expenses Profitability Ratios Gross profits Sales Gross Profit Margin Operating profits (EBIT Sales Profit Margi Net income Sales Net Profit Margin Return on Total Assets (ROA) Ne ncome Total assets Return on Equity (ROE) Net income Total equity Basic Earning Power Earnings before interest and taxes Total assets Earnings Per Share (EPS) Net income of common shares outstanding Book Value Per Share of common shares outstandin Total Market price per share of stock Earning per share P/E Ratio A ratio taken alone means very little. Its value comes from using it in conjunction with other ratios and by comparing it to a benchmark. How do you choose a benchmark or a standard of comparison? (1) Trend analysis. One standard you could use is history. You could compare the same ratio over a specified period of time. (2) Comparative ratio analysis. You compare a firm's ratios with those of other firms in the same industry, that is, to industry average figures