ADM 1340 Study Guide - Final Guide: Book Value, Inventory Turnover, Profit Margin
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I would love some help with finding the below ratios for Nike in 2017 10-K Section 4 â Ratio calculations and analysis http://s1.q4cdn.com/806093406/files/doc_financials/2017/ar/docs/nike-2017-form-10K.pdf
RATIO | FORMULA | CURRENT YEAR | PREVIOUS YEAR |
Current Ratio | Current Assets Current Liabilities | ||
Accounts Receivable Turnover | Net Total Sales Avg. Accounts Rec. | ||
Inventory Turnover | Cost of Goods Sold Average Inventory | ||
Gross Profit Margin | Gross Profit Net sales | ||
Net Profit Margin | Net Income Net Sales | ||
Return on Total Assets | Net Income Avg. Total Assets | ||
Return on Stockholdersâ Equity | Net Income Avg. Stockholdersâ Eq. | ||
Earnings Per Share | (given on annual report) | ||
Market Price Per Share at Year End | (available at Yahoo.com and other websites) | ||
Price/Earnings Ratio | Year End Market Price Earnings Per Share | ||
Debt Ratio | Total Liabilities Total Assets | ||
Equity Ratio | Total Stockholdersâ Eq. Total Assets | ||
Times Interest Earned | Income before Int. + Tax Interest Expense |
E13-5 Matching Each Ratio with Its Computational Formula LO 13-4, 13-5, 13-6, 13-7 | |||||||
Match each definition with its related ratios or percentages by selecting the appropriate letter in the drop down provided. | |||||||
Definitions: | Ratios or Percentages | Definitions | |||||
A. | Net Income (before extraordinary items) ÷ Net Sales | 1 | Profit margin | ||||
B. | Days in Year ÷ Receivable Turnover ratio | 2 | Inventory turnover ratio | ||||
C. | Net Income ÷ Average Stockholdersâ Equity | 3 | Average collection period | ||||
D. | Net Income ÷ Average Number of Shares of Common Stock Outstanding | 4 | Dividend yield ratio | ||||
E. | Return on Equity â Return on Assets | 5 | Return on equity | ||||
F. | Quick Assets ÷ Current Liabilities | 6 | Current ratio | ||||
G. | Current Assets ÷ Current Liabilities | 7 | Debt-to-equity ratio | ||||
H. | Cost of Goods Sold ÷ Average Inventory | 8 | Price/earnings ratio | ||||
I. | Net Credit Sales ÷ Average Net Receivables | 9 | Financial leverage percentage | E | |||
J. | Days in Year ÷ Inventory Turnover Ratio | 10 | Receivable turnover ratio | ||||
K. | Total Liabilities ÷ Stockholdersâ Equity | 11 | Average daysâ supply of inventory | ||||
L. | Dividends per Share ÷ Market Price per Share | 12 | Earnings per share | ||||
M. | Market Price per Share ÷ Earnings per Share | 13 | Return on assets | ||||
N. | [Net Income + Interest Expense (net of tax)] ÷ Average Total Assets | 14 | Quick ratio | ||||
O. | Cash from Operating Activities (before interest and taxes) ÷ Interest Paid | 15 | Times interest earned | ||||
P. | Net Sales Revenue ÷ Net Fixed Assets | 16 | Cash coverage ratio | ||||
Q. | (Net Income + Interest Expense + Income Tax Expense) ÷ Interest Expense | 17 | Fixed asset turnover ratio | ||||
Please help me solve these equations. Please show your work so that I can learn.
Gross profit margin = 70% Inventory turnover ratio = 5 times Sales = $4,000 Net profit margin = 5% Average collection period = 45 days Return on equity = 50% Return on assets = 20% Cash = $75 Current ratio = 2.50 times Accounts payable days = 30 days
Note: Of total sales, 80 percent are on credit and the remainder are cash sales. Assume a 360-day year.
Cash | __________ | Notes payable | __________ | |
Accounts receivable | __________ | Accounts payable | __________ | |
Inventory | __________ | Long-term debt | __________ | |
Net fixed assets | __________ | Equity | __________ | |
Total assets | __________ | Total liab. & equity | __________ |