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Given this Income Statement, Balance Sheet and Cashflow for year 2020,2021, and 2022 calculate the following ratios: profitability, liquidity, debt, operating performance, cash flow, and
Given this Income Statement, Balance Sheet and Cashflow for year 2020,2021, and 2022 calculate the following ratios: profitability, liquidity, debt, operating performance, cash flow, and investment valuation ratios. More specifically, calculate the ratios over the last three reporting years and show your calculations utilizing the Exercise Handout breakdown: Exercise Handout
Liquidity Ratios
Current Ratio = Current Assets / Current Liabilities
- Quick Ratio = (Current Assets Inventory) / Current Liabilities
Leverage Ratios
- Long-term Debt/Equity Ratio = Long-term Debt / Equity
- Total Debt/Equity Ratio = (Short-term Debts + Long-term Debts) / Equity
Profitability Ratios
- Net Profit Margin = Net Profit after Taxation / Sales
- Operating Profit Margin = Operating Profit / Sales
- Return on Equity = Net Profit after Taxation / Equity
- Return on Total Assets = Net Profit after Taxation / Total Assets
- Return on Capital Employed = Net Profit after Taxation / (Total Assets Current Liabilities)
Efficiency Ratios
- Inventory Turnover = Sales / Inventory
- Assets Turnover = Sales / Total Assets
Market Value Ratios
- Price Earning Ratio = Current Stock Price / Earnings Per Share (EPS)
Other Fundamental Indicators
- Earnings Per Share (EPS) = Net Profit after Taxation / Issued Common Shares
- Net Asset Value (NAV) = (Total Assets Total Liabilities) / Issued Common Shares
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