Question: Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the ratios. Include the proper assessment of outcomes as positive
Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the ratios. Include the proper assessment of outcomes as positive or negative trends
Appendix A
Technology Year Average for Industry Averages
Profitability
Gross Margin
Operating Profit Margin
Net Profit Margin
Earnings per Share
Management Effectiveness
Return on Equity
Return on Assets
Return on Investment
Quick Ratio
Current Ratio
DebttoEquity
Total Debt to Equity
Efficiency
Total Asset Turnover
Inventory Turnover
Accounts Receivable Turnover
The Ratios I came up with are:
Ratio Calculations
Formula Used Write out formulas
Liquidity Ratios
Current Ratio
Quick Ratio
Activity Ratios
Inventory Turnover
Accounts Recievables Turnover
Total Asset Turnover
Average Collection Period
Financing Ratios
Debt Ratio
DebttoEquity ratio
Times Interest Earned Ratio
Market Ratios
Earnings per Share EPS
Price Earnings PE
Profitability Ratios
Return on Equity ROE
Return on Assets ROA
Net Profit Margin
Operating Profit Margin
I need compare the ratios I came up for the activity, financind, market and profitability with to the industry standard from Appendix A but I am struggling with this. I understand Liquidity but the other four just arent making sense to me and I am not sure how to "read" them so to speak.
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