Amazon Strategic management worksheet
Sugandha
WS9-FinancialRatiosandTrends.docxWORKSHEET 9
KEY FINANCIAL RATIOS & TRENDS
INTERNAL ANALYSIS
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Enter years below with most recent on the left |
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Top 5 Ratios Apply to any business |
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Gross Profit Margin = gross profit /sales |
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Operating Profit Margin = op profit /sales |
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Net Profit Margin = net income /sales |
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Percentage of sales: expense (as available, eg SG&A, R&D) /sales
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Current ratio = current assets/current liabilities |
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Quick ratio = current assets - inventory/ current liabilities |
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Other useful ratios |
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Debt to total assets ratio = Total debt/total assets |
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Debt to equity ratio = Total debt/total stockholders’ equity |
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Days of inventory = (inventory / cost of goods sold) X365 |
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Return on assets (total capital) = Net income / total assets |
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Return on equity = Net income/ Total shareholder’s equity |
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Conclusions (from a minimum of four ratios): |
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Start by confirming total revenue and income in most recent year
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Top Trends Apply to any business |
Enter most recent year
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Growth rate (sales) = (present-past)/past |
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Growth rate (profit) = (present-past)/past |
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CAGR Sales (specify timeframe: ) |
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CAGR Profit (specify timeframe: ) |
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CAGR (enter another important value such as net income, operating income, total revenues, & timeframe) |
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Formula: CAGR = ((Ending Value/ Beginning Value)(1/Number of Years))-1 BA II Calculator - PV, FV , n solve for 1/yr (Set sign of PV to “-“) |
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Conclusions (from a minimum of two trends): |
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