1. Provide the equation for each ratio listed.2. What does each ratio listed tell you about the company?3. Compare the company ratios to the standard ratios, and give an overall analysis of the company. Gross Profit MarginNet Profit MarginEarnings per ShareReturn on AssetsDebt to assets ratioCurrent ratioInventory TurnoverDays in InventoryAverage receivable turnoverAverage collection periodCompany Ratios41.04%12.21%.406.86%.44.5313.2227.618.3843.56Standard Ratios40.00%15.20%.8011.00%.501.5015.0024.3315.0024.33

Introduction:- Ratio analysis used identify the business performance of the company. It is used to…

1. Provide the equation for each ratio listed. 2. What does each ratio listed tell you about the company? 3. Compare the company ratios to the standard ratios, and give an overall analysis of the company.

1. Provide the equation for each ratio listed. 2. What does each ratio listed tell you about the company? 3. Compare the company ratios to the standard ratios, and give an overall analysis of the company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Gross Profit Margin
Net Profit Margin
Earnings per Share
Return on Assets
Debt to assets ratio
Current ratio
Inventory Turnover
Days in Inventory
Average receivable turnover
Average collection period
Company Ratios
41.04%
12.21%
.40
6.86%
.44
.53
13.22
27.61
8.38
43.56
Standard Ratios
40.00%
15.20%
.80
11.00%
.50
1.50
15.00
24.33
15.00
24.33

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