SUMMARY OF KEY FINANCIAL STATEMENT ANALYSIS MEASURES

A. Return on Invested Capital

1. Return on Assets (ROA) = [net income+interest expense 1-tax+minority interest income]average total assets 2. Return on Common Equity (ROCE) = (net income-preferred dividends)average common shareholder'sequity 3. Return on Long Term Capitalization = [net income+long term interest expense 1-tax+ minority interest income](average long term debt+average common shareholder'sequity) 4. Equity Growth Rate = (net income-preferred dividends-dividend payout)average common equity 5. Sustainable Equity Growth Rate (Growth Rate) = ROCE (1-dividend payout rate) 6. Dividend Payout Rate = Cash Dividends PaidNet Income 7. Effective Tax Rate = Tax ExpenseEarnings Before Taxes

A. Profitability
1. Gross Profit Margin = (Sales-Cost of Sales)Sales 2. Operating Profit Margin = Earnings Before Interest and TaxesSales 3. Pretax Profit Margin = Earnings Before TaxesSales 4. Net Profit Margin = Net IncomeSales 5. Earnings Per Share(basic) = (Net Incomer-Preferred Dividends)Weighted average Shares Outstanding 6. Book Value Per Share = (Sharesholder's Equity-Preferred Equity)No.of Shares Outstanding 7. Effective Interest Rate = Total Interest IncurredAverage Interest Bearing Indebtedness 8. Operating Cash Flow to Income = Operating Cash FlowNet Income

A. Asset Utilization
1. Total Asset turnover = SalesAverage Total Asset 2. Cash Turnover = SalesAverage Cash and Cash Equivalents 3. Accounts Receivable Turnover = SalesAverage Accounts Receivable 4. Days Sales in Receivable = (Accounts Receivable x 360)Sales 5. Sales to Inventory = SalesAerage Inventory 6. Working Capital Turnover = SalesAverage Working capital 7. Fixed Asset Turnover = SalesAverage Fixed Asset 8. Current Liabilities Turnover = SalesAverage Current Liabilities A. Liquidity 1. Current Ratio = Current AssetCurrent Liabilities

2. Working Capital = Current Assets-Current Liabilities 3. Acid Test Ratio(Quick) = (Cash+Cash Equivalents+Marketable Securities+Accounts Receivable)Current Liabilities 4. Cash Ratio = (Cash+Cash Equivalents+Marketale Securities)Current Liabilities 5. Collection Period = (Average Accounts Receivable x 360)Sales 6. Inventory Turnover = Cost of SalesAverage Inventory 7. Days To Sell Inventory = (Average Inventory x 360)Cost of Sales 8. Accounts Payable Turnover = PurchasesAverage Accounts Payable Turnover 9. Days Purchases in Accounts Payable = (Accounts Payable x 360)Purchases

10. Operating Cash Flow to Current Liabilities = Operating Cash FlowCurrent Liabilities 11. Operating Cycle = Days Sales to Inentory+Collection Period

A. Capital Structure and Solvency

1. Total Debt Ratio = Total DebtTotal Asset 2. Total Debt to Equity Ratio = Total DebtShareholder's Equity

3. Long Term Debt to Equity = Long Term LiabilitiesShareholder's Equity 4. Times Interest Earned = Earnings Before Interest and TaxesInterest Expense

5. Earnings to Fixed Charges = Earnings Available to Fixed ChargesFixed Charges 6. Cash Flow to Fixed Charges = Pretax Operating Cash Flow Availble to Fixed ChargesFixed Charges 7. Financial Leverage Ratio = Total AssetCommon Shareholder'sEquity 8. Financial Leverage Index = ROCEROA 9. Altman Z-Score = 0.717Working CapitalTotal Asset+ 0.847 Retained EarningsTotal Asset+ 3.107 EBITTotal Assets+0.420 Shareholder's EquityTotal Liabilities+ 0.998SalesTotal Assets

A. Financial Market
1. Price to Earnings = Market Price per Common ShareEarnings Per Share 2. Price to Book = Market Price per Common ShareBook Value Per Share

3. Earnings Yield = Earnings Per ShareMarket Price Pre Common Share 4. Dividend Yield = Annual Cash Dividiend per Common ShareMarket Price per Common Share