WEEK 5 Analysis of Financial Statements: Financial Mix Ratio

CURRENT RATIOS

CURRENT ASSETS/CURRENT LIABILITIES

QUICK/ACID TEST RATIOS

QUICK ASSETS/CURRENT LIABILITIES

Quick Assets

Cash + Trading Securities + Trade Receivables

RECIEVABLE TURNOVER

NET CREDIT SALES/AVERAGE TRADE RECIEVABLE

Average Trade Receivable

(Receivable, Beginning + Receivable, End) / 2

INVENTORY TURNOVER

COST OF GOODS SOLD/AVERAGE INVENTORY

Average Inventory

(Inventory, Beginning + Inventory, End) / 2

DEBT RATIOS

TOTAL LIABILITIES/TOTAL ASSETS

EQUITY RATIOS

TOTAL EQUITY/TOTAL ASSETS

DEBT-TO-EQUITY RATIOS

TOTAL LIABLITIES/TOTAL EQUITY

TIME INTEREST EARND (TIE)

INCOME BEFORE INTEREST AND TAXES/INTEREST EXPENSE

Income before interest and taxes

revenue - cogs - operating expense

Income before interest and taxes

net income + interest + taxes

GROSS PROFIT RATE

GROSS PROFIT/NET SALES

Gross Profit

Revenue - COGS

OPERATING PROFIT MARGIN

OPERATING PROFIT/NET SALES

Operating Profit

Gross Profit - Operating Expenses

NET PROFIT MARGIN

NET INCOME/NET SALES

RETURN ON INVESTMENT

NET INCOME/AVERAGE TOTAL ASSETS

Total Assets

(total assets year + total assets year) / 2