Ratio a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover c. Average number of days to collect accounts receivable f. Inventory turnover g. Average number of days to sell inventory h. Debt to assets ratio i. Debt to equity ratio j. Times interest earned k. Plant assets to long-term debt Net margin m. Asset turnover n. Return on investment o. Return on equity p. Earnings per share q. Book value per share of common stock r. Price-carnings ratio 8. Dividend yield on common stock Calculation Current assets - Current liabilities Current assets + Current liabilities Quick assets + Current liabilities Net sales - Average accounts receivables 365 - Turnover (d.) Cost of goods sold + Avg. inventory 365 - Turnover (f.) Total liabilities - Total assets Total liabilities + Total stockholders' equity (Income before Interest + taxes Winterest Plant assets. Long-term debt Net income + Net sales Net sales + Avg. total assets Net income + Avg. total assets OR (L.) x (m.) Net income + Avg, stockholders' equity Net income - Preferred dividend / Avg, common shares outstanding Stockholders' equity - Preferred rights / Avg. common shares outstanding Market price + EPS Dividends per share + Market price 4 Milavec Company Balance Sheet As of December 31 Year 5 Year 4 Year 3 $ Assets Cash Marketable Securities Notes Receivable Accounts Receivable Merchandise Inventory Prepaid Expenses Property Plant and Equipment (net) Total Assets 36,200 $ 20,000 $ $ 65,000 $ 60,000 $ 20,000 $ 20,000 $ 4,000 $ 50,000 $ 70,000 $ 4,000 $ 340,000 $ 508,000 $ 17,000 22,000 3,000 56,000 43,000 4,000 310,000 455,000 $ $ 340,000 $ 521,200 $ Liabilities and stockholder's Equity Accounts Payable Salaries Payable Taxes Payable Bonds Payable, 8% Preferred Stock, 6%, $100 par, cumulative $ Common Stock, $10 par $ Retained Earnings $ Total Liabilities and Stockholders' Equity $ S $ $ 40,000 $ 2,000 $ 4,000 $ 100,000 $ 50,000 $ 150,000 $ 175,200 $ 521,200 $ 40,000 $ 2,000 $ 4,000 $ 100,000 $ 50,000 $ 150,000 $ 162,000 $ 508,000 $ 38,000 3,000 2,000 100,000 50,000 125,000 137,000 455,000