Question
With the given data please help calculate the following ratios. Please also help me understand the working to get the numbers. Also please explain how
With the given data please help calculate the following ratios. Please also help me understand the working to get the numbers. Also please explain how it compares to industry standards
Ratio | Sectr average |
Current Ratio | 2.30:1 |
Acid Test Ratio (Quick Ratio) | 1.20:1 |
Receivable Turnover Ratio | 7 times |
Receivable Days Average Collection Period or Day Sales Outstanding(DSO) | 52 days |
Inventory Turnover Ratio | 4.85 times |
Inventory Days | 75 days |
Long Term Debt to Total Debt | 24% |
Debt to Equity ratio | 35% |
Gross Profit Ratio | 40% |
Net Profit Ratio | 18% |
Return on Equity | 22% |
Return on total Assets | 10% |
Total Asset Turnover Ratio | 1% |
Fixed Asset Turnover Ratio | 2 |
Current Asset Turnover Ratio | 3 |
Interest Coverage Ratio (times interestearned) | 10% |
Working Capital Turnover Ratio | 8% |
Return on Fixed assets | 24% |
Balance Sheet | |||
| 2012-13 | 2013-14 | 2014-15 |
Assets |
|
|
|
Fixed Assets | 1900 | 2500 | 4700 |
Cash | 40 | 100 | 106 |
Acc Rec | 300 | 1500 | 2100 |
Inventory | 320 | 1500 | 2250 |
Total | 2560 | 5600 | 9156 |
Equities and Liabilities | |||
Equity (Common Stock) | 1200 | 1600 | 2000 |
Reserves(Retained Earnings) | 364 | 1036 | 1876 |
Preferred Stock | 0 | 0 | 0 |
Stock Holders Equity | 1564 | 2636 | 3876 |
Long Term borrowings | 736 | 1236 | 2500 |
Current Liabilities | 260 | 1728 | 2780 |
Total | 2560 | 5600 | 9156 |
Income Statement |
|
|
|
| 2012-13 | 2013-14 | 2014-15 |
Sales |
|
|
|
Cash | 200 | 480 | 800 |
Credit | 1800 | 4320 | 7200 |
Total Sales | 2000 | 4800 | 8000 |
COGS | 1240 | 2832 | 4800 |
G P | 760 | 1968 | 3200 |
Ope Exp | 80 | 450 | 1000 |
EBIDTA | 680 | 1518 | 2200 |
Depn | 100 | 400 | 660 |
EBIT | 580 | 1118 | 1540 |
Interest | 60 | 158 | 340 |
PBT | 520 | 960 | 1200 |
|
|
|
|
Tax | 156 | 288 | 360 |
PAT | 364 | 672 | 840 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started