Problem 2-15

# Ratio Formula
LIQUIDITY
7
1 Current ratio Current Assets
    Current Liabilities
7
2 Acid test ratio Current Assets - Invetories
    Current Liabilities
ASSET MANAGE
7
3 Inventory turnover COGS

    Average Inventories
7
4 360 days
  Day sales in inventory Inventory Turnover
7
5 Net Sales

  Accounts receivable turnover Average Accounts Receivable

7
6 360 days
  Day sales in accounts receivable Accounts receivable turnover
7
7 Fixed asset turnover Net sales
    net fixed assets
7
8 Total asset turnover Net sales
    Total assets
DEBT MANAGE
7
9 Debt to total assets Total Debt
    Total assets
8
0 Earnings before Interest and Tax
  Times-interest-earned ratio Interest Expense
8
1 EBIT + Lease Payments
  Fixed charge coverage Interest Expenses + Lease payment
8 Cash flow coverage Cash inflows
2
    [Intrest + Lease + (PS div/1-T) + ( Debt repaymt / 1-T)]
PROFITABILI
8
3 Profit margin Net income to Common Share
    Net Sales
8
4 Basic earning power Earnings before Interest and Tax
    Total assets
8
5 Return on total asset Net income to Common Share
    Total assets
8
6 Return on equity Net income to Common Share
    Common Equity
MARKET VAL
8
7 Price-Earnings ratio Price Per share
    Earnings per share
8
8 Market-Book Ratio Market price per share
    book value per share