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Liquidity Analysis Ratios Current Ratio Current Ratio = Quick Ratio Quick Ratio = Quick Assets ---------------------Current Liabilities

Current Assets -----------------------Current Liabilities

Quick Assets = Current Assets - Inventories Net Working Capital Ratio Net Working Capital Ratio = Net Working Capital -------------------------Total Assets

Net Working Capital = Current Assets - Current Liabilities

Profitability Analysis Ratios Return on Assets (ROA) Return on Assets (ROA) = Net Income ---------------------------------Average Total Assets

Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2 Return on Equity (ROE) Return on Equity (ROE) = Net Income -------------------------------------------Average Stockholders' Equity

Average Stockholders' Equity = (Beginning Stockholders' Equity + Ending Stockholders' Equity) / 2 Return on Common Equity (ROCE) Return on Common Equity = Net Income -------------------------------------------Average Common Stockholders' Equity

Average Common Stockholders' Equity = (Beginning Common Stockholders' Equity + Ending Common Stockholders' Equity) / 2 Profit Margin Profit Margin = Net Income ----------------Sales

Earnings Per Share (EPS) Earnings Per Share = Net Income --------------------------------------------Number of Common Shares Outstanding

Activity Analysis Ratios Assets Turnover Ratio Assets Turnover Ratio = Sales ---------------------------Average Total Assets

Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2 Accounts Receivable Turnover Ratio Accounts Receivable Turnover Ratio = Sales ----------------------------------Average Accounts Receivable

Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2 Inventory Turnover Ratio Inventory Turnover Ratio = Cost of Goods Sold --------------------------Average Inventories

Average Inventories = (Beginning Inventories + Ending Inventories) / 2

Capital Structure Analysis Ratios Debt to Equity Ratio Debt to Equity Ratio = Total Liabilities ---------------------------------Total Stockholders' Equity

Interest Coverage Ratio Interest Coverage Ratio = Income Before Interest and Income Tax Expenses ------------------------------------------------------Interest Expense

Income Before Interest and Income Tax Expenses = Income Before Income Taxes + Interest Expense

Capital Market Analysis Ratios Price Earnings (PE) Ratio Price Earnings Ratio = Market Price of Common Stock Per Share -----------------------------------------------------Earnings Per Share

Market to Book Ratio Market to Book Ratio = Market Price of Common Stock Per Share ------------------------------------------------------Book Value of Equity Per Common Share

Book Value of Equity Per Common Share = Book Value of Equity for Common Stock / Number of Common Shares Dividend Yield Dividend Yield = Annual Dividends Per Common Share -----------------------------------------------Market Price of Common Stock Per Share

Book Value of Equity Per Common Share = Book Value of Equity for Common Stock / Number of Common Shares Dividend Payout Ratio Dividend Payout Ratio = Cash Dividends -------------------Net Income

ROA = Profit Margin X Assets Turnover Ratio ROA = Profit Margin X Assets Turnover Ratio Net Income ROA = ------------------------ = Average Total Assets Profit Margin = Net Income / Sales Assets Turnover Ratio = Sales / Averages Total Assets Net Income -------------- X Sales

Sales ------------------Average Total Ass

Profitability Ratios These ratios tell us whether a business is making profits - and if so whether at an acceptable rate. The key ratios are: Ratio Calculation Comments

Gross Profit Margin

[Gross Profit / Revenue] x 100 (expressed as a percentage

This ratio tells us something about the business's ability consistently to control its production costs or to manage the margins its makes on products its buys and sells. Whilst sales value and volumes may move up and down significantly, the gross profit margin is usually quite stable (in percentage terms). However, a small increase (or decrease) in profit margin, however caused can produce a substantial change in overall profits.

Operating Profit Margin

[Operating Profit / Revenue] x 100 (expressed as a percentage)

Assuming a constant gross profit margin, the operating profit margin tells us something about a company's ability to control its other operating costs or overheads. ROCE is sometimes referred to as the "primary ratio"; it tells us what returns management has made on the resources made available to them before making any distribution of those returns.

Return on capital employed ("ROCE")

Net profit before tax, interest and dividends ("EBIT") / total assets (or total assets less current liabilities

Financial Ratios Financial Ratios


Below are your calculated financial ratios. Use these ratios to gauge your solvency, liquidity, operational efficiency and profitability. They are also useful measures to compare your business with others in your industry. Profitability Ratios Gross profit margin Formula: Gross profit/sales $270,707,544/$1,585,011,759 = 17.08% This important ratio measures your profitability at the most basic level. Your total gross profit total (which is net sales - cost of goods sold) compared to your net sales . A ratio less than one means you are selling your product for less than it costs to produce. If this ratio remains less than one, you will not achieve profitability regardless of your volume or the efficiency of the rest of your business. Operating profit margin Formula: Operating income/Sales $94,214,516/$1,585,011,759 = 5.94% This ratio measures your profitability based on your earnings before interest and tax (EBIT). This measure is used to gauge the efficiency of the business before taking any financing means into account (such as debt financing and tax considerations). This ratio is often used to compare the operating efficiency between similar businesses. Net profit margin Formula: Net income/Sales $151,380,584/$1,585,011,759 = 9.55% Often referred to as the bottom line, this ratio takes all expenses into account including interest. Liquidity Ratios Current ratio Formula: Current Assets divided by current liabilities $1,091,260,798/$586,661,993 = 1.86 Your current ratio helps you determine if you have enough working capital to meet your short term financial obligations. A general rule of thumb is to have a current ratio of 2.0. Although this will vary by business and industry, a number above two may indicate a poor use of capital. A current ratio under two may indicate an inability to pay current financial obligations with a measure of safety. Quick ratio 1.73 1.86 9.55% 5.94% 17.08%

Formula: Current assets minus inventory divided by liabilities ($1,091,260,798-$77,536,576)/$586,661,993 = 1.73 Also known as the 'Acid Test', your Quick Ratio helps gauge your immediate ability to pay your financial obligations. Quick Ratios below 0.50 indicate a risk of running out of working capital and a risk of not meeting your current obligations. While industries and businesses vary widely, 0.50 to 1.0 are generally considered acceptable Quick Ratios. Operating Ratios Inventory turnover ratio Formula: Cost of goods sold/Inventory $1,314,304,215/$77,536,576 = 16.95 This ratio measures the number of times your inventory 'turned-over' during a time period. Generally, the higher this ratio the better your use of inventory. Low numbers indicate a large amount of capital tied up in inventory that may be more efficiently used elsewhere. Sales to receivables ratio Formula: Net sales/Net receivables $1,585,011,759/$294,329,640 = 5.39 This ratio measures the number of times your receivables 'turned over'. The higher the number, the more efficient you are at collecting your accounts receivable. A ratio that is too high or one that is increasing over time, may indicate an inefficient use of your working capital. It is important to compare this ratio to other businesses in your industry. Return on assets Formula: Net income before taxes/Total assets $151,380,584/$2,424,243,615 = 6.24% This ratio helps show how assets are being used to generate profits. One of the most common financial measures, it can be an effective tool to compare the profitability of two companies. If your return on assets is lower than a competitor, it may be an indication that they have found a more efficient means to operate through financing, technology, quality control or inventory management. Solvency Ratios Debt to worth ratio Formula: Total liabilities/Net worth $839,050,981/$1,585,192,634 = 52.93% Also called the leverage ratio, it is used to help describe how much debt is used to finance the business. While some debt may be prudent, depending on too much debt financing can increase risk. Working capital $504,598,805 52.93% 6.24% 5.39 16.95

Formula: Current assets minus current liabilities $1,091,260,798-$586,661,993 = $504,598,805 Working capital is used by a lender to help gauge the ability of a company to weather difficult financial periods. Working capital is calculated by subtracting current liabilities from current assets. Due to differences in businesses and the fact that working capital is not a ratio but an absolute amount, it is difficult to predict the ideal amount of working capital for your business without making use of other financial measures. (Including the Quick Ratio and the Current Ratio.)

Input summary
Input Summary Total current assets Total current liabilities Total long term assets Total long term liabilities Sales Receivables Cost of goods sold Operating expenses Interest expense Inventory Other income $1,091,260,798 $586,661,993 $1,332,982,817 $252,388,988 $1,585,011,759 $294,329,640 $1,314,304,215 $176,493,028 $0 $77,536,576 $57,166,068

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.