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Sheet1

FIN220 Assignment 1				NAME:
INSTRUCTOR'S NAME: KHALID SADARY				STUDENT NO:
Q1				SECTION:
Ratio	Formula						Point	Unit	Point	Result	Point
Current Ratio	Current Ratio= TCA/TCL						1		1		1
Quick Ratio	Quick ratio=(TCA-Inventory) /TCL						1		1		1
Cash Ratio	Cash ratio=Cash/TCL						1		1		1
Total Asset Turnover	Total asset turnover=Sales/TA						1		1		1
Inventory Turnover	Inventory Days=Cost of good/Inventory						1		1		1
Receivables Turnover	Receivables turnover =Sales on credit/Accounts Receivable						1		1		1
Total Debt Ratio	Total debt ratio=TL / TA						1		1		1
Debt–Equity Ratio	Debt–equity ratio=TL / TE						1		1		1
Equity Multiplier	Equity multiplier= Debt–equity ratio + 1						1		1		1
Times Interest Earned	Times interest earned=EBIT / Interest						1		1		1
Cash Coverage Ratio	Cash coverage ratio=(EBIT+dep.)/Interest						1		1		1
Profit Margin	Profit margin=Net Income/Sales						1		1		1
Return on Assets	Return on assets= Net income/TA						1		1		1
Return on Equity	Return on equity=Net Income/ Shareholders TE						1		1		1
Total							14		14		14	42 point
Q2
												10 point
Q3												Reference for comparing the ratio to industry
Ratio	Result	Favorable/ Unfavorable	Point	Short analysis	Point	Deeper analysis	Point	Overall interpretation	Point			Light Airplane Industry Ratios
Current Ratio			1		1								Lower Quartile	Median	Upper Quartile
Quick Ratio			1		1							Current Ratio	0.50	1.43	1.89
Cash Ratio			1		1							Quick Ratio	0.64	0.84	1.05
Total Asset Turnover			1		2	-	-	-	-			Cash Ratio	0.08	0.21	0.39
Inventory Turnover			1									Total Asset Turnover	0.68	0.85	1.28
Receivables Turnover			1									Inventory Turnover	4.89	6.15	10.89
Total Debt Ratio			1		2							Receivables Turnover	6.27	9.82	11.51
Debt–Equity Ratio			1									Total Debt Ratio	0.31	0.52	0.61
Equity Multiplier			1									Debt–Equity Ratio	0.58	1.08	1.56
Times Interest Earned			1									Equity Multiplier	1.58	2.08	2.56
Cash Coverage Ratio			1									Times Interest Earned	5.18	8.06	9.83
Profit Margin			1		2							Cash Coverage Ratio	5.84	8.43	10.27
Return on Assets			1									Profit Margin	4.05%	5.15%	6.47%
Return on Equity			1									Return on Assets	6.05%	10.53%	13.21%
Total			14		9		6		4	33 point		Return on Equity	9.93%	16.54%	26.15%
Deeper analysis on current and quick ratio:								6 points
Overall interpretation								4 point
Q4
	Formula			Calculation	Point
					4
					4
					4
					3
Total					15 points