Select any bank / firm of your choice. Take out its financial statements.

Calculate the following ratios according to the information found in these statements?

 

Transcribed Image Text:

1. Operating Cycle. Number of days of inventory Number of days of receivables Number of days of payables 2. Liquidity Current ratio 3. Profitability Current assets Current liabilities Gross profit margin = Quick ratio = Current assets - Inventory Current liabilities Operating profit margin 4. Financial Leverage Inventory Inventory Average day's cost of goods sold Cost of goods sold / 365 Total debt to assets ratio Net working capital to sales ratio= Current assets - Current liabilities Sales Accounts receivable Average day's sales on credit Accounts payable Average day's purchases Total debt to equity ratio= Gross income Sales Operating income Sales Total debt Total assets Long-term debt to assets ratio - Long-term debt Total assets Accounts receivable Sales on credit / 365 Total debt Total shareholders' equity Accounts payable Purchases/365 1. Operating Cycle. Number of days of inventory Number of days of receivables Number of days of payables 2. Liquidity Current ratio 3. Profitability Current assets Current liabilities Gross profit margin = Quick ratio = Current assets - Inventory Current liabilities Operating profit margin 4. Financial Leverage Inventory Inventory Average day's cost of goods sold Cost of goods sold / 365 Total debt to assets ratio Net working capital to sales ratio= Current assets - Current liabilities Sales Accounts receivable Average day's sales on credit Accounts payable Average day's purchases Total debt to equity ratio= Gross income Sales Operating income Sales Total debt Total assets Long-term debt to assets ratio - Long-term debt Total assets Accounts receivable Sales on credit / 365 Total debt Total shareholders' equity Accounts payable Purchases/365

Answer rating: 100% (QA)

SOLUTION Lets use the financial statements of Apple Inc to calculate the ratios 1 Operating Cycle a Number of days of inventory Inventory 38545 millio... View the full answer