3 - Business 3/3 Analyzing Financial statements with ratio...

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Business 3/3 Analyzing Financial statements with ratio analysis Profitability ratios Liquidity ratios (how quickly we can pay things off) Asset Utilization ratios Debt utilization ratios Per share data Current Ratio = Current Assets (what you can turn into cash in a year) / Current Liabilities (something that is due in a year) Inventory Turnover = changes in this ratio might show problems within a firm. Sales/inventory Debt to Equity – how much a firm relies on debt to run company Total liabilities / owners equity Earnings per share – net income of a firm divided by number if shares. Net income/number of outstanding shares Dividends per sare- how much money the firm is paying out on an annual basis per share of stock Total dividends paid / number of shares outstanding Market capitalization The value of a company o Market calue of shares outstanding o Stock price X #shares BCOR INC. Share price – 1500
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This note was uploaded on 09/30/2009 for the course BCOR 1010 taught by Professor Latier,jef during the Spring '07 term at Colorado.

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3 - Business 3/3 Analyzing Financial statements with ratio...

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