Home - Answers Community - Algebra Calculator - Student Deals - MBA Guide - Business Degree Guide - College Algebra - Mathematics - Research Statistics - About
Free Homework Help

FIN200 Week 2 Checkpoint. Financial Ratios.

Using the financial statements for the Goodyear Calendar Company, calculate the 13 basic ratios found in the chapter.


Profitability ratios

Profit margin = $168,000/$2,000,000 = 8.40%

Return on assets (investment) = $168,000/$760,000 = 22.1%
Return on equity = $168,000/$480,000 = 35%

Assets utilization ratios

Receivable turnover = $2,000,000/$120,000 = 16.66x
Average collection period = $120,000/$5,555 = 21.6 days
Inventory turnover = $2,000,000/$180,000 = 11.11x
Fixed asset turnover = $2,000,000/$350,000 = 5.71x
Total asset turnover = $2,000,000/$760,000 = 2.63x

Liquidity ratio

Current ratio = $370,000/$110,000 = 3.36x
Quick ratio = $190,000/$110,000 = 1.72x

Debt utilization ratios

Debt to total assets = $280,000/$760,000 = 36.84%
Times interest earned = $300,000/$20,000 = 15x
Fixed charge coverage = $310,000/$30,000 = 10.33x

comments powered by Disqus
Get Final Exam Answers from ACCNerd