financial ratio formulas liquidity ability of a company to pay their debts within one year

current ratio Mcurrent assets/current liabilities working capital current assets-current liabilities inventory turnover . cogs/average inventories acc. Receiv. Turnover. net sales/aver. Accounts receivables total asset turnover net sales/average total assets

solvency ability of a company to survive long-term.

debt to equity total liabilities/total equity coverage . times interest . earned EBIT ( OPERATING INCOME/interest

profitability ret urn a company earns on sales, assets and equity.

profit margin net incomeet sales return on assets. net income//average total assets return on equity net income/average total equity

How to do an average? 2 point average beg of year+end of year/2

define EBIT earnings before interest and taxes = operating income ra t ios are best understood when compared to the ratios of other companies in th

walgreens duane reed

Selected data from the Coca Cola ihc 10K for academic purposes only Income statement data \begin{tabular}{|l|r|} \hline sales & 790 \\ \hline cogs & 340 \\ \hline operating income -EBIT & 280 \\ \hline ne t income & 160 \\ \hline interest & 25 \\ \hline balance sheet data \\ \hline \\ \hline average acc/ rec \\ \hline average inventory & 120 \\ \hline current assets & 150 \\ \hline average total assets & 300 \\ \hline current liabilities & 800 \\ \hline total debt & 175 \\ \hline average total eq uity & 200 \\ \hline \end{tabular} financial ratios