Calculate the following for 2018 using the given formulae and vividly explain the ratio analysis, referring to
Question:
Calculate the following for 2018 using the given formulae and vividly explain the ratio analysis, referring to the calculations of the company in 2018; interpret all the connections of good and bad in terms of the calculation to the company:
(1)Current ratio = Current assets /Current liabilities (2)Quick ratio=(Current assets - Inventory)/Current liabilities (3)Inventory turnover = Cost of goods sold / Inventory (4)Average Collection =Accounts Receivable /Average Sales Per Day {Period=Accounts Receivable /(Annual Sales/365)} (5)Total asset turnover = Sales / Total assets (6)Debt Ratio= Total Liabilities / Total Assets (7)Times interest earned ratio = Earnings before interest and taxes / Interest (8)Gross profit margin = (Sales - Cost of sales) / Sales (9)Operating profit margin = Operating profits / Sales (10)Net profit margin = Earnings available for common stockholders / Sales (11)Earnings per share = Earnings available for Common Stockholders / Number of shares of Common Stok Outstanding (12)ROA = Earnings available for common stockholders / Total assets (13)ROE= Earnings available for common stockholders / Common stock equity (14) P/E ratio = Market price per share of common stock / Earnings per share (15)Market/Book (M/B) ratio = Market price per share of common stock /(Common Stock Equity/Number of Common Stock Outstanding) (16)DuPont=Net Income/sales x Sales/assets x Assets/ total equity