Ratio Analysis Joe’s Fly-By-Night Oil Company

Please complete the following for Joe’s Fly-By-Night Oil Company, whose financial statements are shown below: • Prepare a ratio analysis for the fiscal year ended Dec 31, 2012. Organize your analysis per the following outline: (1) Liquidity - Current ratio - Quick ratio Comments on liquidity (2) Asset management - Total Asset turnover - Average collection period (ACP) Comments on asset management (3) Debt management - Debt ratio - Times interest earned Comments on debt management (4) Profitability - Net profit margin - Return on Assets (ROA) - Return on Equity (ROE) - Extended Du Pont equation Comments on profitability to include your comments on the sources of ROE revealed by the Du Pont equation (5) Market value ratios - PE ratio - Market to book ratio Comments on the market value ratios For the purposes of this exercise, assume the following data for Joe’s Fly-By-Night Oil: Stock price on Dec 31, 2012…$50.00 Number of common shares outstanding on Dec 31, 2012...1,000