RATIO 1. Liquidity Ratios Current ratio RATIO: CALCULATION OF CROCS, INC. 2011 2012 Current assets Current liabilities 525,343 155,303 613,115 157,938 = 3.38 = 3.88 Quick ratio Current assets - 525,343 129,627 613,115 164,804 inventory 155,303 157,938 Current liabilities 2. Leverage Ratios Debt-to-Total Assets Ratios = 2.55 = 2.84 Total debt Total assets 203,673 695,453 212,238 829,638 = 0.29 = 0.26 Debt-to-Equity Ratios Total debt Total stockholders' equity Long-Term Debt-to- Equity ratio 203,673 491,780 212,238 617,400 = 0.41 = 0.34 Long-term debt Total stockholders' equity Times-Interest- Earned Ratios Profits before interest and taxes (41,665 + 6705) 491,780 (36,343+ 4569+13361) 617,400 = 0.10 = 0.08 131,079 853 146,174 837 Total interest charges = = 153.67x = 174.6x CONCLUSION 3. Activity Ratios Inventory Turnover Sales Inventory of finished goods Fixed Assets Turnover Sales Fixed assets 1,000,903 129,627 1,123,301 164,804 = 6.82x = 7.72x 1,000,903 (67,684+48,641 + 30,375 +23,410) = 5.88 1,123,301 (82,241 +59,931+ 34,112 +40,239) = 5.19 Total Assets Turnover Sales 1,000,903 695,453 Total assets = 1.44 Accounts Receivable 1,123,301 829,638 = 1.35 Turnover Annual credit sales Accounts receivable 1,000,903 84,760 1,123,301 92,278 = 11.81x 12.17x Average Collection Period Accounts receivable 84,760 1,000,903 / 365 Total credit sales/365 days = 31 Days 4. Profitabilty Ratios Operating Profit Margin EBIT Sales 92,278 1,123,301/365 30 Days 131,079. 1,000,903 = 0.13 146,174 1,123,301 = 0.13 Net Profit Margin Net Income Sales Return on Total Assets (ROA) Net Income Total Assets 112,788 1,000,903 = 0.11 Return on Stockholders' Equity (ROE) Net Income Total stockholders' equity 131,343 1,123,301 = 0.12 112,788 695,453 131,343 829,638 = 0.16 = 0.16 112,788 491,780 131,343 617,400 = 0.23 = 0.21 Price-Earning Ratio Market price per share Earning per share 20.04 1.27 = 15.78 21.55 1.46 = 14.76