Question

• Current Ratio = Current Assets / Current Liabilities

                                   = 1,53

• Total Debt to Equity = Total Liabilities / Shareholder’s Equity

                                              = 112.52%

• Long Term Debt to Equity = Long Term Liabilities / Shareholder’s Equity

                                                        = 70.25%

• Return on Assets = [Net Income + Interest Expense*(1-Tax Rate)] / Average Total Assets

                                          = 5.66%    

• Return on Common Equity = Net Income / Average Shareholder’s Equity

                                                        = 14.57%

• Gross Profit Margin = (Sales – Cost of Sales) / Sales

                                             = 32.04%           

• Operating Profit Margin = Income from Operations / Sales

                                                    = 24.89%

• Net Profit Margin = Net Income / Sales

                                         = 9.96%

• Account Receivable Turnover = Sales / Average Account Receivable

                                                             = 6.88

• Inventory Turnover = Cost of Sales / Average Inventory

                                            = 95,22

• PPE Turnover = Sales / Average PPE

                                    = 24,17

• Total Asset Turnover = Sales / Average Asset Turnover

                                               = 0,57

• Price to Earnings = Market Price Per Share / Earning Per Share

                                        = 11,28

• Earnings Yield = Earning Per Share / Market Price Per Share

                                     = 0,088

• Dividend Yield = Cash Dividend Per Share / Market Price Per Share

                                      = 7.12%

• Price to Book = Market Price Per Share / Book Value Per Share

                                   = 1,6

Can you Interpret the results in more detail?

Answer 1

Current ratio shows the proportion of current ratio with curren liability. Ideal current ratio should be 2 :1 that means current assets should be twice of the current liability.

Price to book value ratio is more than 1 that means market price per share is more than book value per share.

Price to earning ratio shows no of times the market price is with respect to Earing per share. It is 11.28 which seems to be reasonable.

Net profit margin shows the percentage of profit earned of sales. It is 9.66 % it can considered good.

Long term debt to equity ratio is 70.25 % that means long term debt is 70 % of the equity. It is more levered with debt then equity.