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Checkpoint- Financial Ratios - Sales Fixed assets 8 Total...

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Goodyear Company Industry Average Profitability Ratios 1. Profit Margin= Net Income 168,000 Sales 2.Return on assets ( investment)= a. Net Income Total Assets b. Net Income X Sales Sales Total Assets 3. Return on equity= a. Net Income Stockholders' equity b. Return on assets (investment) (1- Debts/Assets) Asset Utilization Ratios 4. Receivables turnover= Sales (credit) Receivables 5. Average collection period = Accounts receivable Average daily credit sales 6. Inventory turnover = Sales Inventory 7. Fixed asset turnover =
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Unformatted text preview: Sales Fixed assets 8. Total asset turnover = Sales Total assets Liquidity Ratios 9. Current ratio = Current assets Current liabilities 10. Quick ratio = Current assets - Inventory Current liabilities Debt Utilization Ratios 11. Debt to total assets = Total debt Total assets 12. Times interest earned = Income before interest and taxes Interest 13. Fixed charge coverage = Income before fixed charges and taxes Fixed charges...
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