Wednesday, May 6, 2020

Financial Ratios Current Ratio - 1551 Words

Financial ratios 1. Current ratio Current ratio=Current Assets/Current Liabilities 18,720 / 17,089=1.0954 2. Quick ratio Quick ratio= (Current Assets – Inventories) / Current Liabilities (18,720 – 3,581)/17,089=0.8859 3. Return on Assets ratio Return on Assets ratio= Net Profit before Tax/Total Assets 34,201/74,638=0.4582 4. Net Profit Margin Net Profit Margin=Net income after taxes/revenue 6,214/65,492=0.0949 5. Accounts Receivable Turnover ratio Accounts Receivable Turnover ratio=Sales/Accounts Receivable 65,492/7,041=9.3015 6. Accounts Payable Turnover Accounts Payable Turnover=Cost of Goods Sold/Accounts payable Cost of Goods Sold=Sales-Gross Profit=65,492-34,201=31,291 31,291/4,451=7.0301 7. Inventory Turnover Inventory Turnover=Cost of Goods sold/Inventory 31,291/3,581=8.7381 8. Sales to Assets ratio Sales to Assets ratio=Sales/Total Assets 65,492/74,638=0.8775 9. Net Margin Net Margin=Net profit before Tax/sales (8,304-6,214)/65,492=0.03191 10. Gross Margin Gross Margin=Gross Profit/Sales 34,201/65,492=0.5222 11. Interest coverage ratio (Times interest earned) Interest coverage ratio=Net Income/Interest Expense 6,178/0 12. Debt ratio Debt ratio= Total liabilities/Total Assets 52,344/74,638=0.7013 13. Operating Margin Ratio Operating Margin ratio=Operating Income/Net sales Net Sales=65,492-34,201 9,112/ (65,492-34,201) = 0.2912 14. Debt to Equity ratio Debt to Equity ratio= Total liabilities/Total Equity Total Equity=TotalShow MoreRelatedAt Universal Health Services, Inc.1526 Words   |  7 PagesInc. we want to evaluate our financial condition, so that we can assess how we are doing compared to our competitors. We also want to create a strategic financial plan for the next three years, so that we can continue to grow stockholder’s equity and to keep up and even take over our competition. One way to analyze our financial condition is through financial ratios. â€Å"Financial ratios are often used in benchmarking. 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