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Ratio Analysis Template

This file contains a spreadsheet that can be used as a template for conducting ratio analysis. Using
the data below for Sample Company, several commonly used financial statement analysis ratios are
computed, using the data contained in the cells for the Balance Sheet and Income Statement for
Sample Company. Click on any of the cells containing a ratio to see how the ratios are computed
based on cell-referenced formulas.
To use this template for analysis of another company, copy this template to another spreadsheet
and substitute another company's financial statement data in place of the Sample Company data.
Additional ratios and analysis can be performed by inserting your own ratio formulas into the
spreadsheet and/or by incorporating additional information (e.g., free cash flow analysis or debt
coverage ratios).

Sample Company
Balance Sheet
Cash
Accounts Receivable
Marketable Securities
Inventories
Prepaids
Total Current Assets
Property, Plant, and Equipment, net
Total Assets
Current Liabilities
Bonds Payable
Common Equity
Total Liabilities & Equity

Income Statement
Sales
Cost of Goods Sold
Gross Profit
SG&A
Interest Expense
Net Income

Common Ratios
Current
Acid Test
Debt to Asset
Receivable Turnover
Inventory Turnover
Profit Margin
Asset Turnover
Return on Assets
Return on Equity

Dec 31 2001
Dec 31 2000
$52,000
$60,000
198,000
80,000
80,000
40,000
440,000
360,000
3,000
7,000
773,000
547,000
857,000
853,000
$1,630,000
$1,400,000
=========== ===========
$240,000
$160,000
400,000
400,000
990,000
840,000
$1,630,000
$1,400,000
=========== ===========
2001
2000
$1,640,000
$1,574,000
800,000
725,000
840,000
849,000
440,000
430,000
40,000
25,000
$360,000
$394,000
=========== ===========
2001
3.221
1.375
0.393
11.799
2.000
0.220
1.083
24%
39%

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