Venn Diagrams and Ratios_Problem_Set

Venn Diagrams and Ratios_Problem_Set - Financial Ratio...

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Unformatted text preview: Financial Ratio Comparison (2006) Ford GM Gross M argin Percentage 14.04% 3.83% Earnings per Share (6.72) $ (3.49) $ Price-Earnings Ratio (1.12) (0.01) Dividend Yield Ratio 3.33% 3.83% Return on Total Assets-2.52%-0.01% Return on Common Stockholders' Equity-252.84%-42.90% Book Value Per Share 0.58 $ (7.51) $ Working Capital 97,669,000,000 $ (3,691,000,000) $ Current Ratio 1.85 0.94 Acid-Test (Quick) Ratio 1.48 0.74 Inventory Turnover Ratio 12.6 11.86 Average Sale Period 28.97 days 30.79 days Times Interest Earned Ratio-0.93-1.35 Debt-to-Equity Ratio-81.39-35.00 Analysis of Selected Ratios Gross Margin Percentage Important measure of profitability More efficient companies usually see higher gross margin percentages In 2006, Fords gross margin percentage was significantly higher Earnings per Share EPS is generally considered to be the single most important variable in determining a shares price It is important to recognize that this EPS is reflective of the 2006 fiscal year...
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Venn Diagrams and Ratios_Problem_Set - Financial Ratio...

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