Question
Please help me to find ratio analysis AND Interpretation Given below is the formula that we studied: Formula 1)Current ratio Current asset/ Current liabilities 2)Acid
Please help me to find ratio analysis AND Interpretation
Given below is the formula that we studied:
Formula | |
1)Current ratio | Current asset/ Current liabilities |
2)Acid test ratio | Cash + short-term investment+ account receivable(net) / Current liabilities |
3)Account receivable turnover | Net credit sales/ Average net account receivable |
4)Inventory turnover | Cost of goods sold/Average inventory |
5)Profit margin | Net income/Net sales |
6)Asset turnover | Net sales/Average total asset |
7)Return on asset | Net income/ Average total asset |
8)Return on common stockholders equity | Net income/Average common stockholder equity |
9)Earning per share | Net income Dividend/ Weighted -average common share outstanding |
10)Price earnings ratio | Market price per share of stock/ Earning per share |
11)Pay-out ratio | Cash dividend/Net income |
12)Debt to asset ratio | Total debt/ Total asset |
13)Times interest earned | Income before taxes and interest expense/Interest expense |
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