What was the cash coverage ratio for the year Cash Coverage ratio

What was the cash coverage ratio for the year cash

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What was the cash coverage ratio for the year? Cash Coverage ratio = EBITDA/interest Net Sales - COGS - SG&A EBITDA - Depr/ Amort EBIT - Interest expense EBT - Taxes EAT or NI NI = (1 – t)EBT EBT = $13,168 / (1 – 0.34) = $19,951.52 EBIT = EBT + Interest paid = $19,951.52 + 3,605 = $23,556.52 EBITD = EBIT + Depreciation = $23,556.52 + 2,382 = $25,938.52 Cash coverage ratio = EBITD / Interest = $25,938.52 / $3,605 = 7.20 times 7 Calculate Short-term solvency ratios Calculate Asset utilization ratios Calculate Long-term solvency ratios Calculate Profitability ratios #5:
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8 9 Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate):
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10 Short-term solvency ratios: Current ratio = Current assets / Current liabilities Current ratio 2008 = $56,260 / $38,963 = 1.44 times Current ratio 2009 = $60,550 / $43,235 = 1.40 times Quick ratio = (Current assets – Inventory) / Current liabilities Quick ratio 2008 = ($56,260 – 23,084) / $38,963 = 0.85 times Quick ratio 2009 = ($60,550 – 24,650) / $43,235 = 0.83 times Cash ratio = Cash / Current liabilities Cash ratio 2008 = $21,860 / $38,963 = 0.56 times Cash ratio 2009 = $22,050 / $43,235 = 0.51 times Asset utilization ratios: 2009 Total asset turnover = Sales / Total assets Total asset turnover = $305,830 / $321,075 = 0.95 times Inventory turnover = Cost of goods sold / Inventory Inventory turnover = $210,935 / $24,650 = 8.56 times Receivables turnover= Sales / Accounts receivable Receivables turnover = $305,830 / $13,850 = 22.08 times 11 Long-term solvency ratios: Total debt ratio = (Total assets – Total equity) / Total assets Total debt ratio 2008 = ($290,328 – 176,365) / $290,328 = 0.39 Total debt ratio 2009 = ($321,075 – 192,840) / $321,075 = 0.40 Debt-equity ratio = Total debt / Total equity Debt-equity ratio 2008 = ($38,963 + 75,000) / $176,365 = 0.65 Debt-equity ratio 2009 = ($43,235 + 85,000) / $192,840 = 0.66 Equity multiplier = 1 + D/E Equity multiplier 2008 = 1 + 0.65 = 1.65 Equity multiplier 2009 = 1 + 0.66 = 1.66 Times interest earned = EBIT / Interest Times interest earned = $68,045 / $11,930 = 5.70 times Cash coverage ratio = (EBIT + Depreciation) / Interest Cash coverage ratio = ($68,045 + 26,850) / $11,930 = 7.95 times Profitability ratios: 2009 Profit margin = Net income / Sales Profit margin = $36,475 / $305,830 = 0.1193 or 11.93% Return on assets = Net income / Total assets Return on assets = $36,475 / $321,075 = 0.1136 or 11.36% Return on equity = Net income / Total equity Return on equity = $36,475 / $192,840 = 0.1891 or 18.91%
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  • Winter '14
  • Ratio, Financial Ratio, TA

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