Accounting Ratio Excel Template

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Let us take the example of Walmart Inc.’s annual report for 2018 to illustrate the calculation of accounting ratios.
The following information is available in the annual report:

Particulars Amount (in millions)

Revenue $500,343
Cost of Sales $373,396
Operating Expenses $106,510
EBITDA $30,966
Interest Expense $1,978
Total Debt $39,040
Total Assets $204,522
Total Equity $80,822
Current Assets $59,664
Prepaid Expenses $3,511
Current Liabilities $78,521
Cash & Cash Equivalents $6,756
Marketable Securities $0
Trade Receivables $5,614
Inventories $43,783
Trade Payables $46,092

Liquidity Ratio

Current Ratio is calculated using the formula given below

Current Ratio = Current Assets / Current Liabilities

Current Ratio 0.76

Quick Ratio is calculated using the formula given below

Quick Ratio = (Current Assets - Inventories - Prepaid Expenses) / Current Liabilities

Quick Ratio 0.16

Cash Ratio is calculated using the formula given below

Cash Ratio = (Cash & Cash Equivalents + Marketable Securities) / Current Liabilities

Cash Ratio 0.09

Leverage Ratio

Debt-to-Equity Ratio is calculated using the formula given below

Debt-to-Equity Ratio = Total Debt / Total Equity

Debt-to-Equity Ratio 0.48

Debt-to-Assets Ratio is calculated using the formula given below
Debt-to-Assets Ratio = Total Debt / Total Assets

Debt-to-Assets Ratio 0.19

Interest Coverage Ratio is calculated using the formula given below

Interest Coverage Ratio = EBITDA / Interest Expense

Interest Coverage Ratio 15.66

Activity Ratio

Receivables Turnover Ratio is calculated using the formula given below

Receivables Turnover Ratio = Revenue / Trade Receivables

Receivables Turnover Ratio 89.12

Inventory Turnover Ratio is calculated using the formula given below

Inventory Turnover Ratio = Cost of Sales / Inventories

Inventory Turnover Ratio 8.53

Payable Turnover Ratio is calculated using the formula given below

Payable Turnover Ratio = Cost of Sales / Trade Payables

Payable Turnover Ratio 8.10

Profitability Ratio

Gross Profit Margin is calculated using the formula given below

Gross Profit Margin = (Revenue - Cost of Sales) / Revenue

Gross Profit Margin 25.4%

Operating Profit Margin is calculated using the formula given below

Operating Profit Margin = (Revenue - Cost of Sales - Operating Expenses) / Revenue

Operating Profit Margin 4.1%

f accounting ratios.