PROJECT:

Select any bank / firm of your choice.Take out its financial statements.

Calculate the following ratios according to the information found in these statements.

(NOTE: Show your workings)

1.Operating Cycle.

Number of days of inventory = Inventory Inventory Average day's cost of goods sold Cost of goods sold / 365 Number of days of receivables = Accounts receivable Accounts receivable Average day's sales on credit Sales on credit / 365 Number of days of payables = Accounts payable Accounts payable Average day's purchases Purchases / 365Current ratio : Current assets Current liabilities Quick ratio = Current assets - Inventory Current liabilities Net working capital to sales ratio = Current assets - Current liabilities SalesGross profit margin = Gross income Sales Operating profit margin = Operating income SalesTotal debt to assets ratio = Total debt Total assets Long-term debt to assets ratio = Long - term debt Total assets Total debt to equity ratio = Total debt Total shareholders' equity