Submitted by: Submitted by ars8707
Views: 259
Words: 270
Pages: 2
Category: Business and Industry
Date Submitted: 09/04/2012 02:35 PM
* 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...