Fs Analysis

ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS

  a. Liquidity Ratios

Ratio | Formula | Computation |
Current Ratio or Working Capital Ratio or Bankers’ Ratio | Current AssetsCurrent Liabilities | 38,997,00030,146,000=1.29:1 |
Acid Test Ratio or Quick Ratio | Quick Assets*Current Liabilities*Quick Assets = Cash + Cash Equivalents + Net Receivables + Marketable Securities | 8,057,000+8,189,000+12,083,00030,146,000=0.94:1 |
Cash Ratio | Cash+Cash Equivalents+Marketable SecuritiesCurrent Liabilities | 8,057,000+8,189,00030,146,000=0.54:1 |
Cash to Current Assets Ratio | Cash+Cash Equivalents+Marketable SecuritiesCurrent Assets | 8,057,000+8,189,00038,997,000=0.42:1 |

EARNING POWER

Ratio | Formula | Computation |
Total Debt Ratio | Total LiabilitiesTotal Assets | 49,043,000111,641,000=0.44:1 |
Debt to Equity Ratio | Total LiabilitiesEquity | 49,043,00062,598,000=0.78:1 |
Times-Interest-Earned Ratio | EBITInterest Expense | 38,820,000828,000=46.88:1 |

ASSET MANAGEMENT RATIOS

Ratio | Formula | Computation |
Merchandise Inventory Turnover | Cost of SalesAverage Inventory | 45,849,000(7,734,000+7,925,000)/2=5.86 Times |
Average Age of Inventory | # of days/yearInventory | 365 Days5.86=62.3 Days |
Receivable Turnover Ratio | Net Credit SalesAverage Accounts Receivable | 109,722,00012,196,000=9 Times |
Average Collection Period | # of Days in a YearReceivable Turnover Ratio | 365 Days9 Times=40.56 Days |
Fixed Assets Turnover Ratio | Net SalesAverage Net Fixed Assets | 109,722,000(21,438,000+21,599,000)/2=5.1 TImes |
Total Assets Turnover Ratio | Net SalesAverage Total Assets | 109,722,000(111,641,000+110,916,000)/2=1 Times |
Payout Ratio | Dividends Earnings | 5443+72935384 = .174 |

PROFITABILITY RATIOS

Ratio | Formula | Computation |
Profit Margin on Sales or Net Profit Percentage | Net IncomeNet Sales | 35,384,000109,722,000=32.25% |
Net Operating Income to Sales | EBITNet Sales |...