RATIO ANALYSIS SPREADSHEET = Pos, Neu, Neg Company 20_ 20_ 20_ Industry Average BALANCE SHEET RATIOS: Stability (Staying Power) Access csimarket.com and query by stock symbol 1 Current Ability to meet current obligations Current Assets Current Liabilities 2 Debt-to-Equity Margin of Safety to Creditors Total Liabilities Equity INCOME STATEMENT RATIOS: Profitability (Earning Power) 3 Gross Margin Gross Profit expressed as a 9% of Sales Gross Profit Sales Operating Profit Margin Operating Profit expressed as a 9% of Sales Operating Profit Sales 5 Net Margin Net Profit expressed as a 9% of Sales Net Income Sales ASSET MANAGEMENT RATIOS: Overall Efficiency Ratios 6 Earnings Quality Measures cash generated from sales; higher % the better Cash flow from Operations Net Income n/a 7 Return on Assets Measures the profitability of using the assets Net Income Total Assets 8 Return on Equity Measures the profitability of the stockholders investment Net Income Equity ASSET MANAGEMENT RATIOS: Working Capital Cycle Ratios 9 Inventory Turnover Measures the efficiency of moving the inventory Cost of Revenue/Goods Solo Inventory 10 Inventory Turn-Days Average # of days it takes to move inventory 360 360 360 360 Inventory Turnover 11 Accounts Receivable Turnover Measures the efficiency of collecting Accounts Receivable Sales Accounts Receivable 12 Accounts Receivable Turn-Days Average # of days it takes to collect Accounts Receivable 360 360 360 360 Accts. Rec. Turnover 13 Accounts Payable Turnover Measures the efficiency of paying Accounts Payable Cost of Revenue/Goods Solo Accounts Payable n/a 14 Average Payment Period Average # of days it takes to pay Accounts Payable 360 560 360 360 y. Turnover