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Need help in explaining what each of the 10 ratios says about the company's health RATIO Formula 9/30/2022 1. Working capital Current Assets -

Need help in explaining what each of the 10 ratios says about the company's health

 

RATIO Formula 9/30/2022

1. Working capital Current Assets - Current Liabilities

-1,589,000

(4,444,000 - 6,033,000)



2. Current ratio

Current Assets / Current Liabilities

0.74

(4444,000 / 6,033,000)



3. Debt ratio

Total Liabilities / Total Assets

0.75

(14,278,000 / 19,016,000)



4. Earnings per share

Net Income / Weighted Average Common shares outstanding

0.901

(3,100,000 / 3.440.000)



5. Price/earnings ratio

Share Price / EPS

77.4

(69.66 / 0.90)



6. Total asset turnover ratio

Total revenue / Total assets

0.21

(3,946,000 / 19,016,000)



7. Financial leverage

Total Assets / Shareholder's Equity

4.01

(19,016,000 / 4,738,000)




8. Net profit margin

Net Income / Total Revenue

78.56%

(3,100,000 / 3,946,000)



9. Return on assets

Net Income / Total Assets

16.30

(3,100,000 / 19,016,000)



10. Return on equity

Net Income - Preference Dividend / Shareholder's equity

65.43%

(3,100,000 - 0 / 4,738,000)



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