Compute for Johnson & Johnson the following ratios and explain in your own words how that ratio compares to average or normal performance or situation: (each computed, explained, and analyzed item will get you 4.5 marks approx.)

Liquidity:

• Acid Test
• Cash Ratio
• Current ratio
• Inventory turnover
• Receivables turnover
• Payables turnover
• The operating cycle
• Cash conversion cycle

Cash Flow:

• CF coverage ratio
• Free CF / CF from Ops ratio
• CF from Ops / Sales Ratio
• Price / CF ratio

Leverage:

• Debt Ratio
• Times Interest Earned

Profitability:

• Gross margin
• Net margin
• EPS
• RoA
• RoE

Market:

• P/E ratio
• Market to Book
• Market Cap