Sample Company Balance Sheet Dec 31 2001 Dec 31 2000 Cash $52,000 $60,000 Accounts Receivable 198,000 80,000 Marketable Securities 80,000 40,000 Inventories 440,000 360,000 Prepaids 3,000 7,000 Total Current Assets 773,000 547,000 Property, Plant, and Equipment, net 857,000 853,000 Total Assets $1,630,000 $1,400,000 =========== =========== Current Liabilities $240,000 $160,000 Bonds Payable 400,000 400,000 Common Equity 990,000 840,000 Total Liabilities & Equity $1,630,000 $1,400,000 =========== ===========
Income Statement 2001 2000 Sales $1,640,000 $1,574,000 Cost of Goods Sold 800,000 725,000 Gross Profit 840,000 849,000 SG&A 440,000 430,000 Interest Expense 40,000 25,000 Net Income $360,000 $394,000 =========== =========== Common Ratios 2001 Current 3.221 Acid Test 1.375 Debt to Asset 0.393 Receivable Turnover 11.799 Inventory Turnover 2.000 Profit Margin 0.220 Asset Turnover 1.083 Return on Assets 24% Return on Equity 39% This file contains a spreadsheet that can be used as a template for conducting ratio analysis. Using the data below for Sample Company, several commonly used financial statement analysis ratios are computed, using the data contained in the cells for the Balance Sheet and Income Statement for Sample Company. Click on any of the cells containing a ratio to see how the ratios are computed based on cell-referenced formulas.
To use this template for analysis of another company, copy this template to another spreadsheet and substitute another company's financial statement data in place of the Sample Company data. Additional ratios and analysis can be performed by inserting your own ratio formulas into the spreadsheet and/or by incorporating additional information (e.g., free cash flow analysis or debt coverage ratios). Page 1