Using the data below, calculate the following ratios. Cash 4500 Accts Payable 4400 Accounts Receivable 6200 Wages Payable 2100 Inventory 7000 Notes Payable 4000 Plant & Equipment 7300 Long Term Debt 5000 Equity 9500 Sales = 28,400 Net Income = 2,300 EBIT = 1,00 Interest Charge = 850 Fixed Asset Turnover Inventory Turnover f. Interest Coverage TIE Equity Multiplier Tot Assets/Equity h. L/T Debt Ratio ROA j. ROE
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.
- Using the data below, calculate the following ratios.
Cash 4500 Accts Payable 4400
Accounts Receivable 6200 Wages Payable 2100
Inventory 7000 Notes Payable 4000
Plant & Equipment 7300 Long Term Debt 5000
Equity 9500
Sales = 28,400 Net Income = 2,300 EBIT = 1,00 Interest Charge = 850
- Fixed Asset Turnover
- Inventory Turnover f. Interest Coverage TIE
- Equity Multiplier Tot Assets/Equity h. L/T Debt Ratio
-
ROA j.ROE
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