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Unformatted text preview: VIRGINIA COMMONWEALTH UNIVERSITY School of Business Department of Management Professor Krug MGMT 434 - Strategic Management Financial Ratios for Evaluating a Business Short-Term Liquidity Ratios (Round to two decimal points) 1. Current Ratio Current Assets Current Liabilities 2. Quick Ratio (Cash + Marketable Securities + Short-Term Receivables) 1 Current Liabilities Long-Term Liquidity Ratios (Round to two decimal points) 3. Total Liabilities Ratio Total Liabilities Shareholders Equity 4. Short-Term Liabilities Ratio Current Liabilities Shareholders Equity 5. Long-Term Liabilities Ratio Long-Term Liabilities 2 Shareholders Equity Profitability Ratios (Show % value rounded to two decimal points) 6. Gross Margin (%) Net Sales Less Cost-of-Goods-Sold x 100 Net Sales (Revenues) 3 7. Profit Margin (%) Profit after Tax (PAT) x 100 Net Sales (Revenues) 8. Net Income % Net Sales Net Income x 100 Net Sales (Revenues) 1 1 Do not include long-term receivables in the current or quick ratio. Do not include long-term receivables in the current or quick ratio....
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This note was uploaded on 12/01/2009 for the course MGMT 12233 taught by Professor Krug during the Spring '09 term at VCU.
- Spring '09