Financial Ratios

2014
Asset Management

Inventory turnover Cost of Sales/ Average inventory 9

2.40
Fixed assets turnover Cost of Sales / Fixed Assets

Ssales / Total Assets 0.81

Total assets turnover

Working capital turnover

Sales/(Current Assets-Current Liabilities) 1.03

Profitability

37.51%
Gross Profit Margin (Sales-Cost of sales)/Sales

Profit Margin Net income/Sales 1.47%

Earning power "adjusted" EBIT / total assets 1.7 %

Return on assets (ROA) "adjusted" net income / total assets 1.2 %

1.2 %
Return on equity (ROE) "adjusted" net income / equity
2015
Asset Management

Cost of Sales / Average Inventory

Inventory turnover 9.26

11.37
Fixed assets turnover Cost of Sales / Fixed Assets

Sales / Total Assets

3.52
Total assets turnover

Working capital Sales/(Current Assets-Current

4.35
turnover Liabilities)

Profitability
38.76%
Gross Profit Margin (Sales-Cost of sales)/Sales

Profit Margin Net income/Sales 6.32%

Earning power "adjusted" EBIT / total assets 31.8%

Return on assets (ROA) "adjusted" net income / total assets 22.26 %

Return on equity (ROE) "adjusted" net income / equity 22.26 %

2016
Asset Management

Inventory turnover Cost of Sales / Average inventory 9.12

14.87
Fixed assets turnover Cost of Sales / Fixed assets

Total assets turnover 3.81

Sales / Total assets
Working capital 4.57
Sales/(current assets-current liabilities)
turnover

Profitability

34.84%
Gross Profit Margin (Sales-Cost of sales)/Sales

Profit Margin Net income/sales 3.28%

Earning power "adjusted" EBIT / total assets 17.8%

Return on assets (ROA) "adjusted" net income / total assets 12.49%

12.49 %
Return on equity (ROE) "adjusted" net income / equity

Days’ Supply in Inventory = 360 Days/Inventory Turnover

Measures average number of days to sell or consume the average

inventory

2014 2015 2016

360 days 360 360 360
Inventory Turnover 9 9.26 9.12
Days’ Supply in Inventory 40 38.88 3.47
Capital Intensity Ratio = Total Assets/ Net Sales

Measures efficiency of the firm to generate sales through

employment of its resources

2014 2015 2016

Total Assets 1,300,000.00 1,300,000.00 1,300,000.00
Net Sales 1,058,400.00 4,578,638.40 4,951,797.43
Capital Intensity Ratio 1.23 1.3 .28 .

Gross Profit Margin = Gross Profit/ Net sales

Measures profit generated after consideration of cost of product sold

2014 2015 2016

Gross Profit 396,970.80 2,568,789.06 1,725,189.47
Net Sales 1,058,400.00 4,578,638.40 4,951,797.43
Gross Profit Margin .38 .56 .35

Net Profit Margin = Net Profit/ Net Sales

Measures profit generated after consideration of all expenses and revenues

2014 2015 2016

Net Profit 16,647.54 471,074.32 373,936.96
Net Sales 1,058,400.00 4,578,638.40 4,951,797.43
Net Profit Margin .16 .10 .076
Cash Flow Margin = Cash flow for operating activities/Net Sales

Measures the ability of the firm to translate sales to cash

2014 2015 2016

Cash Flow from Operating Activities (107,543.30) 79,286.79 111348.65
Net Sales 1,058,400.00 4,578,638.40 4,951,797.43
Cash Flow Margin (.10) .17 .02

Payback Period = Initial investment/Periodic cash flow

= 1300000/615451 = 2.12 years

Break Even = (Fixed Costs/Selling Price per Unit) - Variable Cost per Unit

Year Calculation Break Even point in Units

2014 (374,778/560)– 216.11 453.14

2015 (1,361,293.60/588) – 212.77 2102.36

2016 (1,493,160.92/617.40)– 209.53 2208.94