Algrebre Ratios

* Asset Turnover Ratios indicate how efficiently a company utilizes its assets that are sometimes referred to as efficiency ratios, asset utilization ratios, or asset management ratios.

* Receivables Turnover is an indication of how quickly a company collects its accounts receivables.

* Inventory Turnover is the cost of goods sold in a time period divided by the average inventory level during that period.

* Financial Leverage Ratios provide an indication of the long-term solvency of the firm and measures the extent to which a company is using long-term debt.

Liquidity Ratios

Current Ratio = Current Assets

Current Liabilities

2006 = 111,728 = 1.26

88,827

Difference of 0.01

2007 = 99,677 = 1.27

78,439

Acid-Test or Quick Ratio ????? I think is the same as the Current Ratio

Receivables Turnover = Annual Credit Sales

Accounts Receivable

2006 = 51,993 = 0.92

56,292

Difference of 0.24

2005 = 38,893 = 0.68

57,441

Inventory Turnover = Cost of Goods Sold (I do not see this info on the spreadsheets????)

Average Inventory

Profitability Ratios

Asset Turnover???????

Profit Margin???????

Return on Assets = Net Income + After Tax Interest Expense

Average Total Assets

2006 = 19,211 + 790 = 20,001 = 0.09

227,788 227,788

2005 = 18,802 + 901 = 19,703 = 0.09

212,219 212,219

Return on Common Stockholders Equity = ________Net Income_______

Average Shareholders’ Equity

2006 = 19,211 = 0.29...