Ratio Show work Answer EPS $5,000,000 / 5,000,000 shares $1.00 PE $25 / $1 25 PE

Question

Ratio Show work Answer EPS $5,000,000 / 5,000,000 shares $1.00 PE $25 / $1 25 PEG 25 / 16% 1.56 Book value per share $12,000,000 / 5,000,000 million $2.40 Price-to-book value $25 / $2.40 10.42 Dividends per share $1,250,000 / 5,000,000 shares $0.25 Dividend yield (%) $0.25 / $25 1% Payout ratio (%) $0.25 / $1 25% Current ratio $21,250 / $10,000 2.13 Accounts receivable turnover $50,000,000 / $8,000,000 6.25 Inventory turnover $50,000,000 / $12,000,000 4.17 Total asset turnover $50,000,000 / $30,000,000 1.67 Debt-equity ratio 8,000,000/12,000,000 66.67% Times interest earned $10,000,000 / $2,500,000 4 Net profit margin (%) $5,000,000 / $50,000,000 10% ROA (%) $5,000,000 / $30,000,000 16.67% ROE (%) $5,000,000 / $12,000,000 41.67% Overall, if you were researching stocks for purchase, would you purchase North Mountain

Explanation / Answer

You need to calculate common equity (total stockholders' equity - preferred stock) + stockholders' equity at the end /2.

Then calculate the average receivables and the cash dividend was paid on shares outstanding at the end of year.

These computations are based on balance sheet.

After all, you' ll know if the liquidity suggests no problem in meeting obligations, the debt is manageable, receivable and inventory appear to be turning well, and profits are good or not.

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