Submitted by: Submitted by Irene1990
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Words: 2264
Pages: 10
Category: Other Topics
Date Submitted: 02/17/2013 08:34 AM
Answers:
Financial ratios about reebok
Return to equity=net income/Avg. total equity
1990: 176.6/ (0.5*(996.7+884.3))=0.19
1989: (175)/ (0.5*(884.3+690.7)) = 0.22
1988: (137)/ (0.5*(690.7+584.8)) = 0.21
Profit margin=net income/sales
1990: 176.6/2159.2 = 0.08
1989: 175.0/1822.1 = 0.10
1988: 137.0/1785.9 = 0.08
Gross margin= (net income-cost of sales)/sales
1990: (2159.2-1288.3)/2159.2 = 0.40
1989: (1822.1-1071.8)/1822.1 = 0.41
1988: (1785.9-1122.2)/1785.9 = 0.37
Total asset turnover=net sales/Avg. total assets
1990: 2159.2/ (0.5*(1403.2+1166.4)) = 1.68
1989: 1822.1/ (0.5*(1166.4+1063.4)) = 1.63
1988: 1785.9/ (0.5*(1063.4+868.4)) = 1.85
Account receivable turnover=sales/Average Accounts Receivable
1990: 2159.2/ (0.5(391.3+289.4)) = 6.3
1989: 1822.1/ (0.5(289.4+(289.4-6.5))) = 6.4
1988: 1785.9/(0.5((289.4-6.5)+(289.4-6.5-66.7))) = 7.1
Inventory Turnover ratio=Cost of goods sold/average inventory
1990: 1288.3/(0.5(367.2+276.9)) = 4.0
1989: 1071.8/(0.5(276.9+(276.9+35.6))) = 3.6
1988: 1122.2/(0.5((276.9+35.6)+(276.9+35.6-54.0))) = 3.9
Debt/equity ratio=total liabilities/total equity
1990: (1403.2-996.7)/996.7 = 0.41
1989: (1166.4-844.3)/844.3 = 0.38
1988: (1063.4-690.7)/690.7 = 0.54
Total liabilities=total assets-total equity
1990: 1430.2-996.7=433.5
1989: 1166.4-844.3=322.1
1988: 1063.4-690.7=372.7
Current ratio=current asserts/current liabilities
1990: 1029.7/293.8 = 3.5
1989: 784.3/203 = 3.9
1988: not required
Quick ratio= (cash + marketable security + accounts receivable)/current liabilities
1990: (227.1+391.3)/293.8 = 2.1
1989: (171.4+289.4)/203.0 = 2.3
1988: not required
Times interest earned= income before interest and taxes/interest expense
1990: (176.6+118.2+18.9)/18.9 = 16.6
1989: (175+115.8+15.6)/15.6 = 19.6;
1988: (137.0+93.6+14.1)/14.1 = 17.3
Financial ratios about L.A. gear
Return to equity=net income/Avg. total equity
1990: 31.3/ (0.5*(205.9+168.2))=0.17
1989: 55.1/ (0.5*(168.2+41.3)) = 0.53
1988:...