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Current Ratio
Current Ratio =
Current Assets
Current Liabilities
2015
10415
=1.29
8017
2014
14608
=1. 73
8461
A ratio between 1.5 and 3 is generally considered healthy. Since the 2015 current ratio is 1.29
and the 2014 current ratio is 1.73, this shows that both years it was healthy.
Inventory Turnover
Inventory Turnover =
2015
1221+1560
=2.82
2
3909
2014
1560+1498
=2.57
2
3932
Days in Receivables
2015
17482
= 1.23
14266
2014
18897
= 1.27
14852
Net Income
Net Sales
2015
17482
= 1.23
14266
2014
18897
= 1.27
14852
ROE
Return on Equity =
Total Liabilities
Total Stockholders ' Equity
Net Income
Avg Total Stockholders ' Equity
2015
17482
= 1.23
14266
2014
18897
= 1.27
14852
EPS (you do not have to calculate this one you can research it online in the financials)
2015 Basic = .94
2014 Basic = 1.21
2. Select any two of above ratios, and then research the industry average for the ratio and compare it
to your companys. Show these comparisons in a chart or graph each. Explain what additional
observations can be made based on this comparative information for your company in 3-4
sentences per ratio selected. (2)
3. Explain what other information you would want to have in order to make a better decision on the
overall health of your company. You should include at least one additional ratio, and then 2 other
quantitative or qualitative aspects for the business. (1)
Unprofessional presentation, lack of sources or identification, incomplete responses, etc. will result in
deductions.
Reference Tables:
Figure 2. Current Assets and Liabilities from the Yahoo! Finance Balance Sheet
Other Reference:
http://www.oldschoolvalue.com/blog/valuation-methods/balance-sheet-ratios/