HW33 _4244
MIDZ_23
Ratioanalysisworksheet.docFinancial Ratio Analysis Worksheet
Your Full Name:
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Basic Rules |
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Liquidity |
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Current Ratio
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Should be >1.00 |
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Quick Ratio
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Good to see close to 1 |
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Leverage |
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Debt to total asset ratio
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Good to see less than 1 |
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Debt to Equity ratio
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Smaller is better |
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Activity |
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Inventory turnover
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Higher turnover will be better --- Smaller inventory level will increase the turnover! |
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Fixed asset turnover
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Higher turnover will be better --- Smaller fixed assets level will increase the turnover (Productivity of the fixed assets)! |
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Profitability |
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Gross profit margin
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Higher is better (Lower cost of goods sold or Higher sales will increase the margin) --- Strategic directions (Ex. Focusing on sales quantity or Lean operations) |
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Operating profit margin
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Higher is better – Operational efficiency will be indicated. Better cost structure might increase this margin. |
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Net profit margin
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Higher is better. Total profitability (Corporate profitability). Check the interest expense and Discontinued operations. |
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Return on total Assets (ROA)
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Higher is better. Consider EBIT and portion of total assets. The total sales for each $1 of total assets. |
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Your own financial assessment / Analyses / Suggestions:
Liquidity of Staples:
Leverage of Staples:
Activity of Staples:
Profitability of Staples:
