# Ratios 1 Current Ratio = Current Assets / Current Liabilities 2 Quick Ratio = (Current Assets - Inventory) / Current Liabilities 3 Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory 4 Inventory Turnover Days = 365 / Inventory Turnover Ratio 5 Asset Turnover Ratio = Revenue/Total Assets 6 Accounts Receivable Turnover Ratio = Revenue / Average Accounts Receivable 7 Debt Ratio = Total Debt/ Total Assets 8 Times Interest Earned (TIE) Ratio = Earnings Before Interest and Taxes (EBIT)/ Interest Expense 9 Return on Equity (ROE) = Net Income / Shareholders' Equity 10 Equity Ratio = Shareholders' Equity / Total Assets Instructions: 1. II. Industry 2022 2023 Averages 2.01 1.4 2.88 112 days 0.885 2.77 24.22% 5.6 15.34% 77.55% Resolve the ratios listed on table A for each year (2022 & 2023): a. For each ratio includes the math computes for (2022 & 2023) b. Fill XYZ Tech Solutions Ratio Analysis Table A (grey area). (2022 & 2023) Perform the following Analysis: a. Explain each ratio results for 2023 only. b. Compare each ratio performance with the previous year results (compare 2023 results with 2022 results) c. Compare each Ratio results for 2023 with their respective Industry average. III. Based on the previous results, evaluates, and explain the Company financial position using the following questions: 1. How liquid is the firm? 2. Is management generating adequate operating profits on the firm's assets? 3. How is the firm financing its assets? 4. Are the owners (stockholders) receiving an adequate return on their investment?