Instructions: Fill in the cells with $ (yellow highlighted) and the ratios will automatically calculate
Financial Ratios Analysis	Current Year	Previous Year	Previous Year
Liquidity Ratios
Current Ratio: Current Assets/Current Liabilites		-	-	extent to which a firm can meet short-term obligations - generally one wants an upward trend
Quick Ratios: Current assets minus inventory/current liabilities		-	-	extent to which a firm can meet short-term obligations w/o selling inventory - generally one wants an upward trent
$ Current Assets
$ Current Liabilites
$ Inventory	$-
Leverage Ratios
Debt-to-Total Assets Ratio: Total Debt/Total Assets	-	-	-	% of total funds provided by creditors - generally one wants a downward trend
Debt-to-Equity Ratios: Total Debt/Total Stockholders' Equity	-	-	-	% of total funds provided by creditors vrs. by owners - generally one wants a downward trend
Times-Interest-Earned Ratio: Profits before interest & taxes/Total Interest Charges	-	-	-	extent to which earnings can decline w/o firm being unable to pay interest - generally one wants and upward trend
$ Total Debt
$ Total Assets
$ Total Stockholders' Equity
$ Profits before Interest and taxes
$ Total Interest Expense
Activity Ratios
Inventory Turnover: Sales/Inventory of Finished Goods	-	-	-	whether firm holds extensive inventory and is selling it slower than industry - generally one wants and upward trend
Fixed Assets Turnover: Sales/Fixed Assets	-	-	-	Sales productivity and plan and equipment utilization - generally one want to see an upward trend
Total Assets Turnover: Sales/Total Assets	-	-	-	whether firm is generating sufficient vol. of busin. for size of asset investment - generally one wants an upward trend
Average Collection Period: Accounts Receivable/(Total credit sales/365 days)	-	-	-	average time it takes for firm to collect on credit sales - generally one wants a downward trend
$ Sales
$ Inventory of Finished Goods
$ Fixed Assets
$ Total Assets
$ Accounts Receivable
$ Total Credit Sales (uless othewise indicated, same as sales)
Profitability Ratios
Gross Profit Margin: Sales minus cost of good sold/Sales	-	-	-	total margin available to cover operating expenses and yield a profit - generally one wants an upward trend
Operating Profit Margin: Earnings before interest and taxes (EBIT)/Sales	-	-	-	profitability w/o concern for taxes and interest - generally one wants and upward trend
Net Profit Margin: Net Income/Sales	-	-	-	after-tax profits per dollar of sales - generally one wants an upward trend
Return on Total Assets (ROA): Net income/Total Assets	-	-	-	after-tax profits per dollar of assets (ROI) - generally one wants and upward trend
Return on Stockholders' Equity (ROE): Net Income/ Total Stockholders' Equity	-	-	-	after-tax profits per dollar of stockholders' investment in the firm - generally one wants and upward trend
Sales Revenue (already entered above - no need to re-enter data)	-	-	-
$ Cost of goods sold or cost of sales
$ EBIT (Earnings Before Interest and Taxes)
$ Net Income (Earnings After Interest and Taxes)
Total Assets (already entered above - no need to re-enter data)	-	-	-
Total Stockholders' Equity (already entered above - no need to re-enter)	-	-	-
$ Other Operating Expenses
Revenue/Expense
Sales Revenue (percentage change)	-	-	-	annual percentage growth rate in sales - generally one wants an upward trend
Cost of Sales (percentage change)	-	-	-	annual percentage growth rate in cost of sales - generally one wants a downward trend
Operating Profit (percentage change)	-	-	-	annual percentage growth rate in operating profit - generally one wants an upward trend
Net Income (percentage change)	-	-	-	annual percentage growth rate in net income - generally one wants an upward trend

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