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Calculation of Ratios

This document calculates and presents various financial ratios for a company for the years 2007, 2008, and 2009. The ratios include current ratio, quick ratio, gross profit margin, net profit margin, return on assets, return on capital employed, earnings per share, debt to assets, debt to equity, times interest earned, inventory turn over, average collection period, and average payment period.

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Horace Prophetic Davis
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382 views5 pages

Calculation of Ratios

This document calculates and presents various financial ratios for a company for the years 2007, 2008, and 2009. The ratios include current ratio, quick ratio, gross profit margin, net profit margin, return on assets, return on capital employed, earnings per share, debt to assets, debt to equity, times interest earned, inventory turn over, average collection period, and average payment period.

Uploaded by

Horace Prophetic Davis
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Calculation of ratios for 2007

Current ratio
2104366/1707895 = 1.23:1
Quick ratio (acid test)
410260/1707895 = 0.24:1
Gross profit margin
(490467/7721003)*100= 6.35%
Net profit margin
405107/7721003*100 = 5.25%
Return on assets
(446789.164/6639086)*100 = 6.73%
Return on capital employed
405107/3291522 = 12.31%
Earnings per share
405107/851138 =$0.48 per share
Debt to assets
3848524/6996005 =0.55:1

Debt to equity
3848524/3147481 = 1.22:1
Times interest earned
552959/62492 = 8.85 times
Inventory turn over
7230536/1572757 = 4.59 times
Average collection period
(149588/7721003)*365 = 7 days
Average payment period
(320944/7230536)*365 = 16 days

Calculation of ratios for 2008


Current ratio
3403893/3452158 = 0.99:1
Quick ratio (Acid test ratio)
737697/3452158 =0.21:1

Net Income
(349002/8642729)*100 = 4.04%
Gross income
(481641/8642729)*100 = 5.57%
Return on Assets
(411270.452/7739948)*100 =5.31%
Return on capital employed
(349002/3148920)*100 = 11.08%
Earnings per share
349002/851138 = $ 0.41 per share
Debt to equity
5101183/3382708= 1.51:1
Debt to Assets
5101183/8463891= 0.60:1
Times interest earned
574997/93356 = 6.16 times
Inventory turnover

8161088/1991557 = 4.09 times


Average collection period
(174227.5/8642729)*365 = 7 days
Average payment period
(5428205/8161088)*365 = 24 days
Calculation of ratios for 2009
Current ratio
3308357/3473229 = 0.95:1
Quick ratio (Acid test ratio)
416946/3473229 = 0.12:1
Gross profit
(440754/8695025)*100 = 5.07%
Net Profit
(283232/8695025)*100 = 3.26%
Return on Assets
(399031.871/8718443)*100 =4.58%
Return on capital employed

(283232/3670931)*100 = 7.72%
Earnings per share
283232/851138 = $0.33 per share
Debt to Assets
5927495/8952995 = 0.66:1
Debt to Equity
5927495/3025500 = 1.96:1
Times interest earning
8394434/173613 = 4.84 times
Inventory turnover
(8254271/2568831) = 3.21 times
Average collection period
(164397/8695025)*365 = 7 days
Average collection period
(621149/8254271)*365 = 27 days

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