Question
I need a time series analysis of Vestel company for these ratios full explaination please Here are the companys Ratios for 2018-2019: Liquidity Current ratio
I need a time series analysis of Vestel company for these ratios full explaination please
Here are the companys Ratios for 2018-2019:
Liquidity
Current ratio = current assets / current liabilities
2019 = 9,608,581 / 14,652,475 = 0.6557
2018 = 10,036,226 / 13,556,998 = 0.7402
Quick (acid-test) ratio = current assets inventory / current liabilities
2019 = (9,608,581 2,833,115) / 14,652,475 = 0.4624
2018 = (10,036,226 2,861,739) / 13,556,998 = 0.5292
Activity
Inventory turnover = Cost of goods sold/ inventory
2019 = 12,896,358 / 2,833,115= 4.55
2018 = 11,570,079 / 2,861,739= 4.04
Average collection period = accounts receivable / average sales per day
2019 = 3,372,830 / (17,174,123 / 365) = 71.682 days
2018 = 3,583,266/ (15,852,300 / 365) = 82.5048 days
Average payment period = accounts payable / average purchases per day
(Total Purchase = 12.896.358 x 0,6 = 7,737,815)
2019 = 6,127,709 / (7,737,815 / 365) = 322.18 days
(Total Purchase = 11.570.079 x 0,6 = 6,942047)
2018 = 5,792,577 / (6,942,047/ 365) = 273.24 days
Total assets turnover = sales / total assets
2019 = 17,174,123 / 19,452,405 = 0.8828
2018 = 15,852,300 / 17,9608,22 = 0.8826
Debt
Debt ratio = Total liabilities / Total assets
2019 = 15,672,494 / 19,452,405 = 0.8056
2018 = 14,642,567 / 17,960,822 = 0.8152
Times interest earned ratio = earnings before interest and taxes / Interest
2019 = 1,274,941 / 1,146,066=1.11
2018 = 482,128 / 730,645=0.66
Profitability
Gross profit margin = gross profits / sales
2019 = 4,277,765 / 17,174,123 = 0.2490
2018 = 4,282,221 / 15,852,300 = 0.2701
Operating profit margin = operating profits / sales
2019 = 1,274,941 / 17,174,123 = 0.074
2018 = 482,128 / 15,852,300 = 0.030
Net profit margin = earnings available for common stockholders / sales
2019 = 351,850/ 17,174,123 = 0.020
2018 = 400,886/15,852,300= 0.025
Profitability (Cont.)
Earnings per share = earnings available for common stockholders / number of shares of common stock outstanding
2019 =0.97 (It is directly given the firms Financial Report)
2018 = 1.11 (It is directly given the firms Financial Report)
Return on total assets = earnings available for common stockholders / total assets
2019= 351,850 / 19,452,405 = 0.18
2018= 400,886 / 17,960,822 = 0.22
Return on common equity = earnings available for common stockholders / common stock equity
2019 = 351,850 / 2,965,847=0.12
2018 = 400,886 / 2,838,471=0.14
Market ratios
Price earnings ratio = market price per share of common stock / earnings per share
2019=12.62/0.97 =13.01
2018= 5.55/1.11 = 5
Book value= Total equity / number of shares outstanding
2019= 3,779,911 / 324,047 = 11.66
2018= 3,318,255 / 371,153 = 8.94
Market/book ratio= market price per share common stock / Book value of shares of common stock
2019= 12.62 / 11.66 = 1.08
2018= 5.55 / 8.94 = 0.62
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