Ratio Analysis Exercise

	Ratio Analysis

	Concepts

	Short-term Solvency Ratios

	Asset Management Ratios

	Debt Management Ratios

	Profitability Ratios

	Market Value Ratios

	Ratio Equations

	Tools & Problems

	Ratio Analysis Exercise

	Ratio Analysis Quiz

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)