Ratio Analisis Acc 300 University of Phoenix

Earnings per Share = Net Income / Average Number of Common Shares Outstanding

2003; $45,901,054 / 27,600,000 = $1.66

2002; $41,521,616 / 25,900,000 = $1.60

Analysis: The portion of the Enterprise profit for each outstanding share of all the stocks increasing by 3.75% it is a great indication of growth of the company and the profitability of it.

Return on Assets = Net Income / Total Assets

2003; $45,901,054 / $1,102,785,506 = 0.0416

2002; $41,521,616 / $933,015,079 = 0.0445

Analysis: In the return on assets there is a minimum decrease, not substantial from the year 2002 to 2003. This indicates that the company was able to convert to profits 4% of the investments.

Current Ratio = Current Assets / Current Liabilities

2003; $120,604,181 / 159,581,009 = 0.76

2002; $92,669,115 / 148,354,402 = 0.62

Analysis: The CR is increasing, what it means that the company was able to pay in a short period of time its short term liabilities with the short terms assets. But even that the ratio still less than 1. This may point that the company may not be able to pay its short term liabilities on time if they came due at that time.

Times Interest Earned Ratio = (Net Income + Interest) / Interest.

2003; ($45,901,054 + 9,561,482) / 9,561,482 = 5.80

2002; ($41,521,616 + 4,997,022) / 4,997,022 = 9.31

Analysis: The Time Interest Earned Ratio have gone down, but this demonstrate that most of the earnings of the corporation can be used in the investing in other projects better than for paying the interest of debts.

Asset Turnover = Total Revenue / Average Total Assets

2003; $1,105,755,057 / [($1,102,785,506 + $933,015,079)/2] = 1.08

2002; can’t be computed.

Analysis: Because of the lack of information on the Assets turnover for 2002 it cannot be computed, it is the total assets of 2001. This indicates that every asset in a dollar worth, it can generate revenue of $1.08.

Debt to Total Assets = Total Liabilities / Total Assets

2003; $498,234,757 / $1,102,785,506 =...