FIN $325$ Exercise Two Handout

All numbers in thousands; Currency in USD

Liquidity Ratios

Current Ratio $=$ Current Assets $/$ Current Liabilities

$114,246,\frac{000}{45},625,000=2\mathrm{.}5$

Quick Ratio Current Assets $-$ Inventory$)\frac{?}{?}$ Current Liabilities

$\frac{114,246,000-2,660,000}{45},625,000=$

$111,586,\frac{000}{45},625,000=2\mathrm{.}4$

Leverage Ratios

$41)$ Long$-$term Debt$/$Equity Ratio $=$ Long$-$term Debt $/$ Equity

Total Debt$/$Equity Ratio $=($Short$-$term Debts $+$ Long$-$term Debts$)\frac{?}{?}$ Equity

Profitability Ratios

Net Profit Margin $=$ Net Profitafter Taxation $/$ Sales

Operating Profit Margin $=$ Operating Profit $\frac{?}{?}$ Sales

Return on Equity $=$ Net Profit after Taxation $/$ Equity

Return on Total Assets $=$ Net Profit after Taxation $/$ Total Assets

Return on Capital Employed $=$ Net Profit after Taxation $/($Total Assets $-$ Current Liabilities$)$

Efficiency Ratios

Inventory Turnover $=$ Sales $/$ Inventory