Homework 7
FY1987
FY1988
Activity Ratios
Inventory
turnover
COGS/ Year - End Inventory
70,756/ 19,577
=3.61
94,934/ 39,135
=2.43
Receivable
turnover
Revenue/ End AR Bal.
128,234/ 27,801
=4.61
181,123/ 51,076
=3.55
Payables
turnover
COGS/ AP Bal.
70,756/ 15,072
=4.69
94,934/ 13,288
=7.14
Liquidity ratios
Current ratio
Current Assets/ Current
Liabilities
49,341/ 24,059
=2.05
94,111/ 23,030
=4.09
Quick Ratio
(Current Assets-
Inventory)/Current Liabilities
(49,341-
19,577)/24,059
=1.24
(94,111-
39,135)/20,030
=2.74
Solvency Ratios
Debt Ratios
Debt to assets
ratio
Total debt/ Total assets
(19,841+900)/
65,241
=0.32
(62,057+1,250)/
118,140
=0.53
Debt to equity
ratio
Total debt/ Total shareholders’
equity
(19,841+900)/
20,087
=1.03
(62,057+1,250)/
31,172
=2.03
Coverage Ratios
Interest
Coverage
EBIT/ Interest Payments
21,904/3,189
=6.87
14,878/1,584
=9.39
Profitability
Ratios
Return on sales