Business Finance Online

Ratio Analysis Exercise

This exercise demonstrates the analysis of financial statements using Ratio Analysis. Click the "New Problem" button to generate a new problem. Calculate each of the ratios indicated below. Then click the "Show Answer" button to view the solution. The worksheet also functions as a calculator. You can enter your own data into the fields and then click the buttons to view the solutions.

Balance Sheet ($ in Millions)
Assets 1998 Liabilities and Owners' Equity 1998
Current Assets   Current Liabilities  
Cash Accounts Payable
Accounts Receivable Notes Payable
Inventory Total Current Liabilities
Total Current Assets Long-Term Liabilities  
    Long-Term Debt
Fixed Assets   Total Long-Term Liabilities
Property, Plant, and Equipment Owners' Equity  
Less Accumulated Depreciation Common Stock ($1 Par)
Net Fixed Assests Capital Surplus
    Retained Earnings
    Total Owners' Equity
Total Assets Total Liab. and Owners' Equity
Income Statement ($ in Millions)
  1998
Sales
Cost of Goods Sold
Administrative Expenses
Depreciation
Earnings Before Interest and Taxes
Interest Expense
Taxable Income
Taxes
Net Income
Dividends
Addition to Retained Earnings
Other Information
Number of Shares Outstanding (Milions)
Price per Share

 

Calculate the following ratios:
Current Ratio    Times Interest Earned    Return on Equity (ROE)
Quick Ratio   Debt Ratio   Payout and Retention Ratios
Receivables Turnover and Days' Receivables   Debt to Equity Ratio   Price/Earnings Ratio
Inventory Turnover and Days' Inventory   Equity Multiplier   Market-to-Book Ratio
Fixed Assets Turnover   Profit Margin   EPS and Book Value Per Share
Total Assets Turnover   Return on Assets (ROA)      

 

 

 

 

 

© 2002 - 2010 by Mark A. Lane, Ph.D.