Financial ratios
As explained in the Class. each group is required to pick one public company and find its associated information to report below financial ratios. You are required to submit an excel file showing your calculation.
Also, some of these ratios are already reported on financial news websites. For those, you are required to compare your calculated ratio with the one reported on the financial websites.
There is no single format for the submission. Obviously, the best submission report receives the highest grade.
1. Short.term solvency, or liquidity, ratios Days’ sales In receivables 365 days ro-1 Receivables turnover J
Current ratio _ Current assets 365 days Current liabilities Days’ costs in payables – Payables turnover
Quick ratio Current liabilities
Current assets – Inventory
Cash ratio
Cash
Current liabilities
Longterm solvency. or financial leverage, ratios Total assets – Total equity
Total debt ratio Total assets
Debt-equity ratio Total debt Total equity Equity multiplier Total assests/Total equity Times Interest earned ratio EBIT interest
Total asset turnover – Sales Total assets
Capital Intensity Total assets Sales IV. Profitability ratios Profit margin – Net IncomeSales
Return on assets (ROA) Net income – Total assets Return on equity (ROE) = Net IncomeTotal equity
EBIT + Depreciation Cash coverage ratiointerest ROE – › x Net Income Sales Assets Sales Assets Equity III. Asset utilization. or turnover, ratios V. Market value ratios Cost of goods sold Price per share Inventory turnover Price-earnings ratio Inventory Earnings per share
365 days Days’ sales In Inventory – Inventory turnover
Receivables turnover = Sales Accounts receivable Cost Of goods sold Payables turnover = Accounts payable
Price-sales ratio – Sales per share
Price per share
M Market-to-book ratio _ arket value per share Book value per share
EBITDA ratio Enterprise value
EBITDA
