Using the finance for the Goodyear Calendar Company caluate the basic ratios.
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finance calculate 13 ratios Foundations of Financial Management Goodyear Calendar Company
To calculate basic financial ratios for the Goodyear Calendar Company, you would need the relevant financial information such as their financial statements (income statement, balance sheet, and cash flow statement). These statements can be found in the company's annual report or through financial databases or websites.
Once you have the financial statements, you can calculate the following common financial ratios:
1. Liquidity Ratios:
- Current Ratio: Divide current assets by current liabilities. Formula: Current Assets ÷ Current Liabilities.
- Quick Ratio (also known as Acid Test Ratio): Divide quick assets (current assets minus inventory) by current liabilities. Formula: (Current Assets - Inventory) ÷ Current Liabilities.
2. Profitability Ratios:
- Gross Profit Margin: Divide gross profit by net sales. Formula: Gross Profit ÷ Net Sales.
- Operating Profit Margin: Divide operating profit by net sales. Formula: Operating Profit ÷ Net Sales.
- Net Profit Margin: Divide net income by net sales. Formula: Net Income ÷ Net Sales.
3. Solvency Ratios:
- Debt-to-Equity Ratio: Divide total debt by shareholders' equity. Formula: Total Debt ÷ Shareholders' Equity.
- Debt Ratio: Divide total debt by total assets. Formula: Total Debt ÷ Total Assets.
4. Efficiency Ratios:
- Inventory Turnover Ratio: Divide cost of goods sold by average inventory. Formula: Cost of Goods Sold ÷ Average Inventory.
- Accounts Receivable Turnover: Divide net credit sales by average accounts receivable. Formula: Net Credit Sales ÷ Average Accounts Receivable.
- Accounts Payable Turnover: Divide purchases by average accounts payable. Formula: Purchases ÷ Average Accounts Payable.
Please note that these ratios are just a few examples, and there are numerous other ratios that can be calculated depending on the specific information available and the analysis you want to conduct.