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Ratio Analysis Template

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).

Sample Company

Statement of Financial Position Dec 31 2017 Dec 31 2016

Cash $52,000 $60,000
Accounts Receivable 198,000 80,000
FV - NI Investments 80,000 40,000
Inventory 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 Shares 990,000 840,000
Total Liabilities & Equity $1,630,000 $1,400,000
=========== ===========

Income Statement 2017 2016

Sales $1,640,000 $1,574,000
Cost of Goods Sold 800,000 725,000
Gross Profit 840,000 849,000
Administrative expenses 440,000 430,000
Interest Expense 40,000 25,000
Net Income $360,000 $394,000
=========== ===========

Common Ratios 2017

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%

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