Hi, I am looking for some guidance with deriving Financial Leverage Ratio or Ret

Question

Hi, I am looking for some guidance with deriving Financial Leverage Ratio or Return on Equity from other ratios, without actual Balance Sheet or Income Statement data. The data given in the assignment are: Current Ratio, Quick Ratio, Day's Sales in Receivables, Merchandise Inventory Turnover, Debt Ratio, Times Interest Earned, Sales as % of base year sales, Net income as % of base year net income, Gross Profit margin, Net Profit Margin, Operating Expenses to Net Sales, and Return on Investment. All this for 5 years in a row. I'm trying to derive FL and/or RoE from these data. Any help? Thanks.

Explanation / Answer

EBIT EBT Net Income Sales Total Assets Return on Equity = ------------ x ------------ x ----------------- x ------------------ x ----------------- Sales EBIT EBT Total Assets Total Equity Return on Equity = Net Profit Margin

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