Financial Ratio Analysis
Current Ratio = Current Assets
Current Liabilities
= 3,970,294
4,712,873
= .8424
Quick Ratio = Quick Assets
Total Current Liabilities
Current Assets – Inventory = 3,970,294 – 3,421,635 = 548,659 (QA) = .1164
4,712,873
Debt Equity Ratio = Total Liabilities
Stockholder Equity
= 4,712,873
1,701,390
= 2.77
Receivable Turnover Ratio = Net Value of Credit Sales
Average Accounts Receivable
= 10,187,340
247,872
= 41.099
Total Assets Turnover Ratio = Net Sales
Total Assets
= 10,187,340
3,970,294
= 2.565
Profit Margin = (Net Income / Total Sales) x 100 = (1,160,241 / 10,187,340) x 100 = 11.389
Return on Assets = Annual Earnings( Net Income)
Total Assets
= 1,160,241
3,970,294
= .292
Inventory Turnover Ratio = Cost of Goods Sold
Average Inventory