For a project, I had to take a company\'s 10-k form, and perform a horizontal an
ID: 2380405 • Letter: F
Question
For a project, I had to take a company's 10-k form, and perform a horizontal analysis, vertical analysis, and solvency and profitability analysis. I completed the financial statements, however I'm also supposed to calculate 20 ratios for the horizontal analysis, 20 ratios for the vertical analysis, and 10 ratios for the solvency and profitability analysis. I went through my textbook, and can't come up with that many. Also, my chosen company appears not to have any dividends (is that normal?), so those ratios I had to leave out.So far, I have how to calculate:
1. assets
2. total liabilities and stockholders' equity
3. gross profit
4. working capital
5. current ratio
6. quick ratio
7. ratio of liabilities to stockholders' equity
8. number of times interest earned
9. average total assets
10. ratio of net sales to assets
11. rate earned on total assets
12. rate earned on stockholders' equity
13. rate earned on common stockholders' equity
14. return on sales
15. return on equity
16. return on assets
17. assets turnover ratio
18. inventory turnover rate
So, I managed to come up with 18, but that's nowhere near the 50 I need. Any help would be appreciated.
Explanation / Answer
For the sake of analysis of a company's profitability and earning capacity and the solvency i would like to propose some ratios. I hope those would help you, the proposed ratios are as follows; Profitability ratios: - Cash debt coverage ratio - Net profit ratio - Return on investment - Contribution margin ratio - operating margin ratio - Profit margin ratio - current return on training and development. Liquidity ratios: - Absolute liquidity ratio - Working capital turnover ratio - Debtors turnover ratio - Creditors turnover ratio - Inventory turnover ratio Leverage ratios: - Operatin leverage ratios - Financial leverafge ratios - Gearing ratios - Fixed coverage ratio - Fixed cost to tottal assets ratio - Capital acquition ratio - Capital employment ratio - Non current assets to non current liabilities ratio - Capital strucrure ratios - Capital to non current assets ratio - Current liabilities to sales - Debt ratio - Fixed assets to short term debt - Retained earnings to total assets. - Short trerm debt to liabilities - Short to long term debt ratio Income ratios: - Net income to opoerating income ratio - Operating income to wages and salaries - Operating income to fixed charges - Net income increase to pay increase - Percentage change in sales volume vs net income Just try these ratios for the better analysis. Ihope these ratios will help you. - Net income to opoerating income ratio - Operating income to wages and salaries - Operating income to fixed charges - Net income increase to pay increase - Percentage change in sales volume vs net income Just try these ratios for the better analysis. Ihope these ratios will help you.Related Questions
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