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Sheet1 Instructions: Fill in the cells with $ (yellow highlighted) and the ratios will automatically calculate Financial Ratios Analysis Current Year Previous Year Previous Year 2014 2013 Liquidity...

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Sheet1
    Instructions: Fill in the cells with $ (yellow highlighted) and the ratios will automatically calculate
    Financial Ratios Analysis    Cu
ent Year    Previous Year    Previous Yea
        2014    2013
    Liquidity Ratios
    Cu
ent Ratio: Cu
ent Assets/Cu
ent Liabilites    1.161    -    -    extent to which a firm can meet short-term obligations - generally one wants an upward trend
    Quick Ratios: Cu
ent assets minus inventory/cu
ent liabilities    0.747    -    -    extent to which a firm can meet short-term obligations w/o selling inventory - generally one wants an upward trent
    $ Cu
ent Assets    $ 2,247,047
    $ Cu
ent Liabilites    $ 1,935,647
    $ Inventory    $ 801,036
    Leverage Ratios
    Debt-to-Total Assets Ratio: Total Debt/Total Assets    0.730    -    -    % of total funds provided by creditors - generally one wants a downward trend
    Debt-to-Equity Ratios: Total Debt/Total Stockholders' Equity    2.705    -    -    % of total funds provided by creditors vrs. by owners - generally one wants a downward trend
    Times-Interest-Earned Ratio: Profits before interest & taxes/Total Interest Charges    16.635    -    -    extent to which earnings can decline w/o firm being unable to pay interest - generally one wants and upward trend
    $ Total Debt    $ 4,109,986
    $ Total Assets    $ 5,629,516
    $ Total Stockholders' Equity    $ 1,519,530
    $ Profits before Interest and taxes     $ 1,389,575
    $ Total Interest Expense    $ 83,532
    Activity Ratios
    Inventory Turnover: Sales/Inventory of Finished Goods    10.163    -    -    whether firm holds extensive inventory and is selling it slower than industry - generally one wants and upward trend
    Fixed Assets Turnover: Sales/Fixed Assets    3.751    -    -    Sales productivity and plan and equipment utilization - generally one want to see an upward trend
    Total Assets Turnover: Sales/Total Assets    1.351    -    -    whether firm is generating sufficient vol. of busin. for size of asset investment - generally one wants an upward trend
    Average Collection Period: Accounts Receivable/(Total credit sales/365 days)     26.430    -    -    average time it takes for firm to collect on credit sales - generally one wants a downward trend
    $ Sales    $ 7,421,768
    $ Inventory of Finished Goods    $ 730,289
    $ Fixed Assets    $ 1,978,623
    $ Total Assets    $ 5,493,502
    $ Accounts Receivable    $ 537,426
    $ Total Credit Sales (uless othewise indicated, same as sales)    $ 7,421,768
    Profitability Ratios
    Gross Profit Margin: Sales minus cost of good sold/Sales    1.000    -    -    total margin available to cover operating expenses and yield a profit - generally one wants an upward trend
    Operating Profit Margin: Earnings before interest and taxes (EBIT)/Sales    0.000    -    -    profitability w/o concern for taxes and interest - generally one wants and upward trend
    Net Profit Margin: Net Income/Sales    0.000    -    -    after-tax profits per dollar of sales - generally one wants an upward trend
    Return on Total Assets (ROA): Net income/Total Assets     0.000    -    -    after-tax profits per dollar of assets (ROI) - generally one wants and upward trend
    Return on Stockholders' Equity (ROE): Net Income/ Total Stockholders' Equity    0.000    -    -    after-tax profits per dollar of stockholders' investment in the firm - generally one wants and upward trend
    Sales Revenue (already entered above - no need to re-enter data)    7,421,768.00    - 0    - 0
    $ Cost of goods sold or cost of sales
    $ EBIT (Earnings Before Interest and Taxes)
    $ Net Income (Earnings After Interest and Taxes)
    Total Assets (already entered above - no need to re-enter data)    5,629,516.00    - 0    - 0
    Total Stockholders' Equity (already entered above - no need to re-enter)    1,519,530.00    - 0    - 0
    $ Other Operating Expenses
    Revenue/Expense
    Sales Revenue (percentage change)    -    -    -    annual percentage growth rate in sales - generally one wants an upward trend
    Cost of Sales (percentage change)    -    -    -    annual percentage growth rate in cost of sales - generally one wants a downward trend
    Operating Profit (percentage change)    -    -    -    annual percentage growth rate in operating profit - generally one wants an upward trend
    Net Income (percentage change)    -    -    -    annual percentage growth rate in net income - generally one wants an upward trend
Generic Financial Analysis Spreadsheet     
Sheet2
Sheet3
Answered Same Day Oct 11, 2021

Solution

Kiran answered on Oct 12 2021
146 Votes
Sheet1
    Instructions: Fill in the cells with $ (yellow highlighted) and the ratios will automatically calculate
    Financial Ratios Analysis    Cu
ent Year    Previous Year    Previous Yea
        2014    2013
    Liquidity Ratios
    Cu
ent Ratio: Cu
ent Assets/Cu
ent Liabilites    1.161    1.767    -    extent to which a firm can meet short-term obligations - generally one wants an upward trend
    Quick Ratios: Cu
ent assets minus inventory/cu
ent liabilities    0.747    1.298    -    extent to which a firm can meet short-term obligations w/o selling inventory - generally one wants an upward trent
    $ Cu
ent Assets    $ 2,247,047    $ 2,487,334
    $ Cu
ent Liabilites    $ 1,935,647    $ 1,408,022
    $ Inventory    $ 801,036    $ 659,541
    Leverage Ratios
    Debt-to-Total Assets Ratio: Total Debt/Total Assets    0.730    0.698    -    % of total funds provided by creditors - generally one wants a downward trend
    Debt-to-Equity Ratios: Total Debt/Total Stockholders' Equity    2.705    2.315    -    % of total funds provided by creditors vrs. by owners - generally one wants a downward trend
    Times-Interest-Earned Ratio: Profits before interest & taxes/Total Interest Charges    16.635    15.162    11.627    extent to which earnings can decline w/o firm being unable to pay interest - generally one wants and upward trend
    $ Total Debt    $ 4,109,986    $ 3,741,436
    $ Total Assets    $ 5,629,516    $ 5,357,488
    $ Total Stockholders' Equity    $ 1,519,530    $ 1,616,052
    $ Profits...
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