IENG 215 Financial Analysis

Financial Statement Analysis  Liquidity Measures  current ratio  quick ratio  working capital  Long Term Credit Risk  debt to assets ratio  debt to equity

Financial Statement Analysis  Profitability Measures  return on assets  return on equity  net profit margin  earnings per share  Activity Ratios  accounts receivable turnover  inventory turnover

Liquidity  Working Capital 900,55 400,67300,123    sLiabilitieCurrentAssetsCurrentWC

Liquidity  Working Capital Q: Is $55,900 sufficient working capital to cover 2-3 months of expenses? 900,55 400,67300,123    sLiabilitieCurrentAssetsCurrentWC

Liquidity  Current Ratio(Industry > 2.0) ,67 300,123    sLiabilitieCurrent AssetsCurrent CR

Liquidity  Quick Ratio (Industry > 1.0) ,67 200,54300,123      sLiabilitieCurrent InventoryAssetsCurrent QR

Long Term Credit Risk  Debt to Assets (Industry < 33%) , ,193    AssetsTotal sLiabilitieTotal DA

Long Term Credit Risk  Debt to Assets (Industry < 33%) , ,193    AssetsTotal sLiabilitieTotal DA

Long Term Credit Risk  Debt to Equity Ratio (Industry 33-50%) , ,193 '    EquitysOwner sLiabilitieTotal DE

Long Term Credit Risk  Debt to Equity Ratio (Industry 33-50%) , ,193 '    EquitysOwner sLiabilitieTotal DE

Profitability Measures  Return on Assets(Industry 8-10%) ,383100, ,18     AssetsAverageTotal IncomeNet ROA

Profitability Measures  Debt to Equity(Industry 12-15%) /)900,175900,193( 000,18     EquityOwnerAverage IncomeNet ROE

Profitability Measures  Net Profit Margin(Industry 4-6%) (Industry Specific) , ,18    SalesNet IncomeNet NPM

Profitability Measures  Earnings per Share(Industry Specific) ,1,18 tan    dingOutsSharesCommon IncomeNet EPS

Activity Ratios  Accounts Receivable Turnover (Industry Specific) /)600,38800,46( 800,574 Re     ceivableAccountsAvg SalesNet ART

Activity Ratios  Inventory Turnover(Industry > 10) /)200,48200,54( 300,428     InventoryAverage SoldGoodsofCost IT

Financial Leverage

, , , ,18   ROE ROA

Financial Leverage

, , , ,14   ROE ROA

Financial Leverage , , , ,14   ROE ROA Note: ROI = 18,000/100,000