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I'm confused on how I can solve those ratios with just this data. If you could help me out with some? Thank you. Rush Creek

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I'm confused on how I can solve those ratios with just this data. If you could help me out with some? Thank you.

Rush Creek Company Ratio Analysis Current Year = CY Last Year = LY CY LY Calculations Liquidity Ratios Current Ratio Quick Ratio CA / CL (CA - Inv. ) / CL Asset Management Ratios Inventory Turnover Days Sales Outstanding (DSO) Total Asset Turnover COGS / Inv. A/R/ Avg. Daily Sales Sales / TA Debt Management Ratios Debt to Equity Ratio Debt Ratio Times Interest Earned A/P Days Debt / Equity Debt / Total Assets EBIT / Interst Exp. A/P / Avg. Daily COGS Profitability Ratios Profit Margin Return on Assets Return on Equity Return on Invested Capital Net Income / Sales Net Income / TA Net Income / Equity EBIT (1-TR) / Invested Capital (use total liabs & equity for invested capital) Market / Valuation Ratios Earnings Per Share (EPS) Price / Earnings Ratio Market Capitalization Net Income / # Shares Share Price / EPS # Shares * Share Price Total Shareholder Return NA (Dividends + SPA) / Original Investment (spa = share price appreciation) 1) What two things should always be done in conjuction with any ratio analysis? 2) What are some limitations / issues with ratio analysis? Rush Creek Monthly Results January - Current Year (000's) Favorable or (Unfavorable) Versus: Budget Last Year % $ % Actual Comments Sales: United States Europe Canada Total Sales $ $ $ $ 180 50 20 250 (15) (7) (3) (25) -8% -12% -13% -9% 20 6 3 29 13% 14% 18% 13% COGS: Labor Raw Materials Production Total COGS $ $ $ $ 50 20 80 150 4 2 9 15 7% 9% 10% 9% (5)! (2) (10) -11% -11% -14% -16% (17) Other Expenses: Selling Advertising Administrative Total Expenses 3 1 A A A A 36 12 24 72 AIO 8% 8% 0% 5% (2) (2) (8) -13% -20% -9% -13% Operating Income $ 28 $ (6) -18% $ 4 17% Rush Creek Company Ratio Analysis Current Year = CY Last Year = LY CY LY Calculations Liquidity Ratios Current Ratio Quick Ratio CA / CL (CA - Inv. ) / CL Asset Management Ratios Inventory Turnover Days Sales Outstanding (DSO) Total Asset Turnover COGS / Inv. A/R/ Avg. Daily Sales Sales / TA Debt Management Ratios Debt to Equity Ratio Debt Ratio Times Interest Earned A/P Days Debt / Equity Debt / Total Assets EBIT / Interst Exp. A/P / Avg. Daily COGS Profitability Ratios Profit Margin Return on Assets Return on Equity Return on Invested Capital Net Income / Sales Net Income / TA Net Income / Equity EBIT (1-TR) / Invested Capital (use total liabs & equity for invested capital) Market / Valuation Ratios Earnings Per Share (EPS) Price / Earnings Ratio Market Capitalization Net Income / # Shares Share Price / EPS # Shares * Share Price Total Shareholder Return NA (Dividends + SPA) / Original Investment (spa = share price appreciation) 1) What two things should always be done in conjuction with any ratio analysis? 2) What are some limitations / issues with ratio analysis? Rush Creek Monthly Results January - Current Year (000's) Favorable or (Unfavorable) Versus: Budget Last Year % $ % Actual Comments Sales: United States Europe Canada Total Sales $ $ $ $ 180 50 20 250 (15) (7) (3) (25) -8% -12% -13% -9% 20 6 3 29 13% 14% 18% 13% COGS: Labor Raw Materials Production Total COGS $ $ $ $ 50 20 80 150 4 2 9 15 7% 9% 10% 9% (5)! (2) (10) -11% -11% -14% -16% (17) Other Expenses: Selling Advertising Administrative Total Expenses 3 1 A A A A 36 12 24 72 AIO 8% 8% 0% 5% (2) (2) (8) -13% -20% -9% -13% Operating Income $ 28 $ (6) -18% $ 4 17%

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