Question
My question is in regards to how to calculate the ratios for Efficiency Ratios and Profitability Ratios. I only need the ratios for asset turnover,
My question is in regards to how to calculate the ratios for Efficiency Ratios and Profitability Ratios. I only need the ratios for asset turnover, inventory turns, and payable turnover from efficiency. From the profitability I need to know gross profit, net profit margin, and return on equity. My question is that I don't know how to get those ratios with the information provided, how do I go about this? If I am using the last bit of information titled, "Norms Data". I don't understand the lingo used and how to translate it into getting these ratios. Thank you
See Microsoft Data.pdf
SIC: Line of Business: Asset Range: Industry Quartiles Statement Sampling Solvency Quick Ratio Current Ratio Current Liabilities / Net Worth (%) Current Liabilities / Inventory (%) Total Liabilities / Net Worth (%) Fixed Assets / Net Worth (%) Efficiency Collection Period (days) Sales / Inventory (times) Assets / Sales (%) Sales / Net Working Capital (times) Accounts Payable / Sales (%) Profitability Return on Sales (%) Return on Assets (%) Return on Net Worth (%) 7372 Prepackaged software All Asset Ranges within SIC Group 2009 2010 2011 2012 2013 Samples: 189 Samples: 180 Samples: 175 Samples: 199 Samples: 190 Upper 2.00 Median Lower 1.20 0.60 Upper 1.90 Median Lower 1.20 0.80 Upper 1.80 Median Lower 1.10 0.50 Upper 1.60 Median Lower 1.00 0.50 Upper 1.90 Median Lower 1.00 0.50 2.70 1.60 0.80 2.60 1.80 1.00 2.50 1.50 0.80 2.60 1.30 0.70 2.60 1.30 0.80 23.40 47.20 94.20 26.20 53.80 107.70 22.60 51.10 117.50 24.60 49.70 103.90 25.00 49.90 101.00 547.00 999.90 999.90 522.60 999.90 999.90 524.30 999.90 999.90 497.00 999.90 999.90 356.70 999.90 999.90 35.70 61.80 129.50 38.90 69.00 146.80 34.80 69.20 169.60 36.30 67.50 149.90 39.10 83.80 166.90 3.80 10.40 23.70 3.70 8.60 18.80 4.80 10.30 23.50 5.00 10.00 27.90 5.50 11.30 26.20 Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower 37.30 55.90 77.90 40.70 65.50 80.50 47.10 66.80 85.10 34.50 56.90 78.50 37.10 57.70 82.00 215.30 51.00 15.50 160.20 59.80 18.50 182.80 66.70 26.30 215.30 64.70 18.40 182.60 48.80 14.80 51.90 98.30 179.20 49.00 107.10 188.10 65.70 133.10 203.00 47.80 118.70 206.20 65.10 133.40 212.20 7.20 3.30 1.90 8.00 3.60 2.10 8.00 3.60 1.90 11.20 4.00 1.80 9.40 3.50 1.60 1.60 3.60 9.80 1.50 3.50 9.30 2.20 4.00 11.50 2.00 4.90 12.80 2.20 4.80 9.90 Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower Upper Median Lower 10.20 1.90 -13.50 12.10 4.50 -6.50 10.90 2.00 -17.60 9.30 0.80 -33.30 9.40 -0.90 -29.00 10.10 1.60 -15.60 11.40 3.80 -6.00 9.80 2.40 -16.10 7.80 0.40 -46.90 6.70 -1.60 -29.30 21.80 4.10 -7.70 29.50 9.70 -2.20 23.90 8.90 -7.90 21.40 7.60 -11.50 15.30 4.30 -22.50 Median Variance Solvency Quick Ratio Current Ratio Current Liabilities / Net Current Worth (%) Liabilities / Total Liabilities Inventory (%) / Net Worth (%) Fixed Assets / Net Worth (%) Efficiency Collection Period (days) Sales / Inventory (times) Median 2010 1.20 0.0 1.60 -12.5 2009 2011 8.3 6.3 2012 100.0 100.0 2013 100.0 100.0 47.20 -3.9 47.2 999.90 2012 100.0 100.0 2013 100.0 100.0 47.2 53.80 2.7 53.8 999.9 -6.6 Median 2009 1.20 0.0 1.80 12.5 2010 2011 8.3 16.7 999.9 999.90 2012 100.0 100.0 2013 100.0 100.0 Median - 53.8 51.10 -2.7 51.1 51.1 - 999.9 6.6 Median 2009 1.10 -8.3 1.50 -6.3 2011 2010 -8.3 -16.7 999.9 999.90 999.9 999.9 - 3.9 61.80 -7.2 -7.4 61.8 61.8 69.00 7.2 -0.2 69 69 69.20 7.4 0.2 69.2 69.2 - 10.40 1.8 0.1 10.4 10.4 8.60 -1.8 -1.7 8.6 8.6 10.30 -0.1 1.7 10.3 10.3 - Median 2010 2011 2012 2013 Median 2009 2011 2012 2013 Median 2009 2010 2012 2013 Median 55.90 17.2 19.5 -100.0 -100.0 65.50 -17.2 2.0 -100.0 -100.0 66.80 -19.5 -2.0 -100.0 -100.0 - 51.00 -17.3 -30.8 100.0 100.0 59.80 17.3 -11.5 100.0 100.0 66.70 30.8 11.5 100.0 100.0 - 1/2 Assets / Sales (%) Sales / Net Working Capital (times) Accounts Payable / Sales (%) Profitability Return on Sales (%) Return on Assets (%) Return on Net Worth (%) 98.30 -8.8 -34.8 98.3 98.3 107.10 8.8 -26 107.1 107.1 133.10 34.8 26 133.1 133.1 - 3.30 -9.1 -9.1 100.0 100.0 3.60 9.1 0.0 100.0 100.0 3.60 9.1 0.0 100.0 100.0 - 3.60 0.1 -0.4 3.6 3.6 3.50 -0.1 -0.5 3.5 3.5 4.00 0.4 0.5 4 4 - Median 2010 2011 2012 2013 Median 2009 2011 2012 2013 Median 2009 2010 2012 2013 Median 1.90 -2.6 -0.1 1.9 1.9 4.50 2.6 2.5 4.5 4.5 2.00 0.1 -2.5 2 2 - 1.60 -2.2 -0.8 1.6 1.6 3.80 2.2 1.4 3.8 3.8 2.40 0.8 -1.4 2.4 2.4 - 4.10 -5.6 -4.8 4.1 4.1 9.70 5.6 0.8 9.7 9.7 8.90 4.8 -0.8 8.9 8.9 - Norms Data Cash Accounts Receivable Notes Receivable Other Current Total Current Fixed Assets Other Current Assets Total Assets Accounts Payable Bank Loan Notes Payable Other Current Total Current Other Long Term Deferred Credits Net Worth Total Liabilities & Net Worth Net Sales Gross Profit Net Profit After Tax Working Capital 2009 5273988 3484932 18636 2031324 11162964 1714512 5758524 18636000 9299364 28.30% 18.70% 0.10% 10.90% 59.90% 9.20% 30.90% 100.00% 49.90% 0.00% 2497224 13.40% 15039252 80.70% 26835840 144.00% 8218476 44.10% 521808 2.80% -16940124 -90.90% 18636000 100.00% 18958291 100.00% 11886848 62.70% 37917 0.20% -15672876 0.00% 2010 5364811 3948048 37780 2040139 11900813 1208972 5780395 18890180 14262086 18890 2871307 21327014 38479297 -4193621 491145 -15886641 18890180 17637890 11023681 529137 -26578484 28.40% 20.90% 0.20% 10.80% 63.00% 6.40% 30.60% 100.00% 75.50% 0.10% 15.20% 112.90% 203.70% -22.20% 2.60% -84.10% 100.00% 100.00% 62.50% 3.00% 0.00% 2011 5462020 3547290 60465 2660468 12072879 1813955 6268223 20155057 22835680 20155 19651181 -544187 41962829 7880627 423256 -30111655 20155057 15142793 9751959 60571 -29889950 2/2 27.10% 17.60% 0.30% 13.20% 59.90% 9.00% 31.10% 100.00% 113.30% 0.10% 97.50% -2.70% 208.20% 39.10% 2.10% -149.40% 100.00% 100.00% 64.40% 0.40% 0.00% 2012 4431574 2909788 33446 2257594 9933415 1789353 5000153 16722921 12157564 50169 10903344 16823258 39934335 9933415 451519 -33596348 16722921 14088392 8762980 -225414 -30000920 26.50% 17.40% 0.20% 13.50% 59.40% 10.70% 29.90% 100.00% 72.70% 0.30% 65.20% 100.60% 238.80% 59.40% 2.70% -200.90% 100.00% 100.00% 62.20% -1.60% 0.00% 2013 10394065 6351929 82493 6021957 23675370 4000890 13570029 41246289 42854894 25.20% 15.40% 0.20% 14.60% 57.40% 9.70% 32.90% 100.00% 103.90% 0.00% 21943026 53.20% 110705040 268.40% 175502960 425.50% 23922848 58.00% 907418 2.20% -159086937 -385.70% 41246289 100.00% 30919257 100.00% 19231778 62.20% -587466 -1.90% -151827590 0.00%Step by Step Solution
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