Ratio Liquidity Ratio Current ratio Activity Ratio Inventory turnover Leverage ratio Debt ratio % Debt to equity % Profitability Ratio Net profit margin ROA ROE Market Ratio EPS P/F ratio Formula Current assets / Current liabilities COGS/Inventory Total liabilities/ Total assets Total liabilities/Stockholders' equity Net earning/ net sales Net income/ Total assets Net income/ Stockholders' equity Net earning/Average share outstanding Market price of common stock/ FPS 2021 1,06 7,75 0,61 1,62 0,08 0,04 0,10 $14.56 10.6 2020 1,05 9,66 0,60 1,58 0,06817 0,03773 0,10 $13.42 9.20
Ratio Liquidity Ratio Current ratio Activity Ratio Inventory turnover Leverage ratio Debt ratio % Debt to equity % Profitability Ratio Net profit margin ROA ROE Market Ratio EPS P/F ratio Formula Current assets / Current liabilities COGS/Inventory Total liabilities/ Total assets Total liabilities/Stockholders' equity Net earning/ net sales Net income/ Total assets Net income/ Stockholders' equity Net earning/Average share outstanding Market price of common stock/ FPS 2021 1,06 7,75 0,61 1,62 0,08 0,04 0,10 $14.56 10.6 2020 1,05 9,66 0,60 1,58 0,06817 0,03773 0,10 $13.42 9.20
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Question
According to the following ratio of Toyota critically assess the business financial condition of Toyota
Transcribed Image Text:Ratio
Liquidity Ratio
Current ratio
Activity Ratio
Inventory turnover
Leverage ratio
Debt ratio %
Debt to equity %
Profitability Ratio
Net profit margin
ROA
ROE
Market Ratio
EPS
P/E ratio
Formula
Current assets / Current liabilities
COGS/Inventory
Total liabilities/ Total assets
Total liabilities/ Stockholders' equity
Net earning/ net sales
Net income/ Total assets
Net income/ Stockholders' equity
Net earning/Average share outstanding
Market price of common stock/ EPS
2021
1,06
7,75
0,61
1,62
0,08
0,04
0,10
$14.56
10.6
2020
1,05
9,66
0,60
1,58
0,06817
0,03773
0,10
$13.42
9.20
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