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tealtiger342Lv1
29 Sep 2019
Fully explain the kind of information the following financial ratios provide about a firm:
a) Quick ratio b) Cash ratio, c) Total assets turnover, d) Equity multiplier, e) Long-term debt ratio,
f) Times interest earned ratio, g)Profit margin, h) Return on assets, i) Return on equity, j) Price-earnings ratio.
Fully explain the kind of information the following financial ratios provide about a firm:
a) Quick ratio b) Cash ratio, c) Total assets turnover, d) Equity multiplier, e) Long-term debt ratio,
f) Times interest earned ratio, g)Profit margin, h) Return on assets, i) Return on equity, j) Price-earnings ratio.
a) Quick ratio b) Cash ratio, c) Total assets turnover, d) Equity multiplier, e) Long-term debt ratio,
f) Times interest earned ratio, g)Profit margin, h) Return on assets, i) Return on equity, j) Price-earnings ratio.
Jamar FerryLv2
29 Sep 2019
Related questions
Some recent financial statements for Smolira Golf, Inc., follow.
| SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 2016 | ||||||||||||||||
| 2015 | 2016 | 2015 | 2016 | |||||||||||||
| Assets | Liabilities and Ownersâ Equity | |||||||||||||||
| Current assets | Current liabilities | |||||||||||||||
| Cash | $ | 2,881 | $ | 2,757 | Accounts payable | $ | 2,208 | $ | 2,710 | |||||||
| Accounts receivable | 4,712 | 5,671 | Notes payable | 1,805 | 2,226 | |||||||||||
| Inventory | 12,698 | 13,672 | Other | 101 | 118 | |||||||||||
| Total | $ | 20,291 | $ | 22,100 | Total | $ | 4,114 | $ | 5,054 | |||||||
| Long-term debt | $ | 14,400 | $ | 17,160 | ||||||||||||
| Ownersâ equity | ||||||||||||||||
| Common stock and paid-in surplus | $ | 43,500 | $ | 43,500 | ||||||||||||
| Fixed assets | Accumulated retained earnings | 15,709 | 39,915 | |||||||||||||
| Net plant and equipment | $ | 57,432 | $ | 83,529 | Total | $ | 59,209 | $ | 83,415 | |||||||
| Total assets | $ | 77,723 | $ | 105,629 | Total liabilities and ownersâ equity | $ | 77,723 | $ | 105,629 | |||||||
| SMOLIRA GOLF, INC. 2016 Income Statement | ||||||
| Sales | $ | 189,570 | ||||
| Cost of goods sold | 127,303 | |||||
| Depreciation | 5,223 | |||||
| EBIT | $ | 57,044 | ||||
| Interest paid | 1,320 | |||||
| Taxable income | $ | 55,724 | ||||
| Taxes | 19,503 | |||||
| Net income | $ | 36,221 | ||||
| Dividends | $ | 12,015 | ||||
| Retained earnings | 24,206 | |||||
Find the following financial ratios for Smolira Golf (use year-end figures rather than average values where appropriate): (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profitability ratios as a percent.)
| 2015 | 2016 | |||||
| Short-term solvency ratios | ||||||
| a. | Current ratio | times | times | |||
| b. | Quick ratio | times | times | |||
| c. | Cash ratio | times | times | |||
| Asset utilization ratios | ||||||
| d. | Total asset turnover | times | ||||
| e. | Inventory turnover | times | ||||
| f. | Receivables turnover | times | ||||
| Long-term solvency ratios | ||||||
| g. | Total debt ratio | times | times | |||
| h. | Debtâequity ratio | times | times | |||
| i. | Equity multiplier | times | times | |||
| j. | Times interest earned ratio | times | ||||
| k. | Cash coverage ratio | times | ||||
| Profitability ratios | ||||||
| l. | Profit margin | % | ||||
| m. | Return on assets | % | ||||
| n. | Return on equity | % | ||||
