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Which ratio did you choose? Explain what this ratio means. What were the results of your calculation? Show your work to the class, including the

  • Which ratio did you choose? Explain what this ratio means.
  • What were the results of your calculation? Show your work to the class, including the formula you used and the data you input for your calculation

Table 3: Financial Ratio Calculations








Calculate 3 Liquidity Ratios Liquidity Ratios Answers


Current Ratio (times) 1.75 Current Assetts/Current Liabilities
Quick Ratio (times) 0.48 (Cash and Marketable Securities+AR)/Current Liabilities
Average Payment Period (days) 190.12. Current Liabilities/((Selling, General and Admin-Depreciations)/365)
Calculate 3 Asset-Management Ratios Asset-Management Ratios Answers


Total Asset Turnover (times) 2.90 Revenue/Total Assetts

Average Collection Period (days) 12.15 AR/(Revenue/365)

Inventory Turnover (times) 5.70 COGS/Inventories

Calculate 2 Financial Leverage Ratios Financial Leverage Ratios Answers


Total Debt to Total Assets 36.94% Total Liabilites/ Total Assetts

Equity Multiplier (times) 1.59 Total Assets /Total Shareholdres Equity

Calculate 5 Profitability Ratios Profitability Ratios Answers


Operating Profit Margin 5.66% Operating Income / Revenue

Net Profit Margin 3.55% Net Income/ Revenue

Return on Total Assets 10.32% Net Income/ Total Assets

Return on Equity 16.33% Net Income / Shareholders Equity

Earnings per Share 0.99. (Net Income x 1000) / Shares Outstanding

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