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You have been provided with the following ratios and other indicators of Ratio Company ATO(sales/TA) 4.0 ROE(NI/TE) 60 Tax rate 20% NI/Sales 10% A/P turnover
You have been provided with the following ratios and other indicators of Ratio Company
You have been provided with the following ratios and other indicators of RATIO Company: ATO(Sales/TA) ROE (NI/TE) Tax rate NI/Sales A/P turnover A/R turnover Interest/Sales Operating cycle 4.0 60% 20% 10% 12 4% 80 days Required: Using the data provided above, calculate RATIO's a. Inventory turnover b. Cash cycle c. Financial leverage (assets/equity) d. ROA(NOPAT/TA) e. Interest coverage ratio(EBIT/Interest) ATO(sales/TA) 4.0
ROE(NI/TE) 60
Tax rate 20%
NI/Sales 10%
A/P turnover 12
A/R turnover 6
Interest/Sales 4%
Operating cycle 80days
Required
Using the data provided above calculate RATIO's
A: Inventory turnover
B: Cash cycle
C: Financial leverage (Asset/equity)
D: ROA(NOPAT/TA)
E. Interest coverage ratio (EBIT/Interest )
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