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| Bean Counter | |||||||||||||||
| https://www.dwmbeancounter.com | |||||||||||||||
| Financial Analysis By Year | |||||||||||||||
| Financial Statements | |||||||||||||||
| RATIO ANALYSIS | Description | CY | PY | PY-1 | |||||||||||
| Profitability Ratios | CY | PY | Activity Ratios | CY | PY | Amount | Pctg | Amount | Pctg | Amount | Pctg | ||||
| Return on Total Assets | 14.6% | 12.6% | Accounts Receivable Turnover | 7.32 | 7.47 | % | % | % | |||||||
| Return on Fixed Assets | 25.8% | 22.2% | Accounts Receivable Collection Days | 49.88 | 48.88 | Income Statement | |||||||||
| Return on Equity | 27.3% | 23.7% | Inventory Turnover | 5.48 | 5.50 | Net Sales (Revenue) | 30,000 | 100.0% | 28,000 | 100.0% | 25,000 | 100.0% | |||
| Gross Margin % | 43.3% | 41.1% | Days of Inventory | 66.56 | 66.36 | Cost of Goods Sold | 17,000 | 56.7% | 16,500 | 58.9% | 15,000 | 60.0% | |||
| Return On Sales | 10.8% | 9.1% | Accounts Payable Turnover | 6.54 | 6.88 | Gross Profit | 13,000 | 43.3% | 11,500 | 41.1% | 10,000 | 40.0% | |||
| (Net Profit Margin) | Accounts Payable Payment Days | 55.82 | 53.09 | Operating Expenses | 8,000 | 26.7% | 7,500 | 26.8% | 7,000 | 28.0% | |||||
| Liquidity Ratios | CY | PY | Solvency Ratios | CY | PY | Earnings Before Interest & Taxes | 5,000 | 16.7% | 4,000 | 14.3% | 3,000 | 12.0% | |||
| Cash Ratio | 0.63:1 | 0.55:1 | Times Interest Earned | 7.14 | 6.67 | Interest Expense | 700 | 2.3% | 600 | 2.1% | 500 | 2.0% | |||
| Quick Ratio | 1.68:1 | 1.55:1 | Debt To Total Assets | 46.26% | 46.73% | Tax Expense | 1,075 | 3.6% | 850 | 3.0% | 625 | 2.5% | |||
| Current Ratio | 2.43:1 | 2.35:1 | Debt To Equity | 86.07% | 87.72% | Net Income | 3,225 | 10.8% | 2,550 | 9.1% | 1,875 | 7.5% | |||
| Working Capital | $ 5,700 | $ 5,400 | |||||||||||||
| Balance Sheet | |||||||||||||||
| Cash | 2,500 | 11.0% | 2,200 | 10.3% | 1,800 | 9.4% | |||||||||
| Calculation Formulas | Short Term Investments | 0.0% | 0.0% | 0.0% | |||||||||||
| Accounts Receivable | 4,200 | 18.5% | 4,000 | 18.7% | 3,500 | 18.3% | |||||||||
| 1. Liquidity Ratios and Metrics | Prepaid Expenses | 0.0% | 0.0% | 0.0% | |||||||||||
| Liquidity ratios measure a company's ability to pay off short-term debts as they become due, using the company's current or quick assets. | Inventory | 3,000 | 13.2% | 3,200 | 15.0% | 2,800 | 14.7% | ||||||||
| Current Assets | 9,700 | 42.7% | 9,400 | 43.9% | 8,100 | 42.4% | |||||||||
| Cash Ratio = Cash / Current Liabilities | Net Fixed Assets | 13,000 | 57.3% | 12,000 | 56.1% | 11,000 | 57.6% | ||||||||
| Quick Ratio = (Cash + Marketable Securities + Net-Accounts Receivable) / Current Liabilities | Other Assets | 0.0% | 0.0% | 0.0% | |||||||||||
| Current ratio = Currents Assets / Current Liabilities | Total Assets | 22,700 | 100.0% | 21,400 | 100.0% | 19,100 | 100.0% | ||||||||
| Working Capital = Currents Assets - Current Liabilities | Accounts Payable | 2,700 | 11.9% | 2,500 | 11.7% | 2,300 | 12.0% | ||||||||
| Other Liabilties | 1,300 | 5.7% | 1,500 | 7.0% | 1,200 | 6.3% | |||||||||
| 2. Solvency Ratios | Current Liabilities | 4,000 | 17.6% | 4,000 | 18.7% | 3,500 | 18.3% | ||||||||
| Also called financial leverage ratios, solvency ratios compare a company's debt levels with its assets, equity, and earnings . | Long Term Liabilities | 6,500 | 28.6% | 6,000 | 28.0% | 5,500 | 28.8% | ||||||||
| These are used to evaluate the likelihood of a company staying afloat over the long haul by paying off both long-term debt | Total Liabilities | 10,500 | 46.3% | 10,000 | 46.7% | 9,000 | 47.1% | ||||||||
| and the interest on that debt. | |||||||||||||||
| Total Equity | 12,200 | 53.7% | 11,400 | 53.3% | 10,100 | 52.9% | |||||||||
| Times Interest Earned = Earnings Before Interest and Taxes / Interest | Total Liabilities & Equity | 22,700 | 100.0% | 21,400 | 100.0% | 19,100 | 100.0% | ||||||||
| Debt To Total Assets = Total Debt / Total Assets | |||||||||||||||
| Debt To Equity = Total Equity / Total Assets | |||||||||||||||
| 3. Profitability Ratios | |||||||||||||||
| These ratios convey how well a company can generate profits from its operations. | |||||||||||||||
| Return on Total Assets = Net Income / Average Total Assets | |||||||||||||||
| Return on Fixed Assets = Net Income / Average Fixed Assets | |||||||||||||||
| Return on Equity = Net Income / Average Equity | |||||||||||||||
| Gross Margin % = Gross Profit / Net Sales | |||||||||||||||
| Return On Sales = Net Income / Net Sales | |||||||||||||||
| (Net Profit Margin) | |||||||||||||||
| 4. Activity Ratios | |||||||||||||||
| Also called efficiency ratios evaluate how efficiently a company uses its assets and liabilities to generate sales and maximize profits. | |||||||||||||||
| Accounts Receivable Turnover = Net Sales / Average Net Accounts Receivable | |||||||||||||||
| Accounts Receivable Collection Days = Average Accounts Receivable / Net Credit Sales X 35 | |||||||||||||||
| Inventory Turnover = Cost Of Goods Sold / Average Inventory | |||||||||||||||
| Days of Inventory = Average Inventory / Cost Of Goods Sold X Number of Days In Period | |||||||||||||||
| Accounts Payable Turnover = Cost Of Goods Sold / Average Accounts Payable | |||||||||||||||
| or Net Credit Purchases / Average Accounts Payable (Preferred Method) | |||||||||||||||
| Accounts Payable Payment Days = Average Inventory / Cost Of Goods Sold X Number of Days In Period | |||||||||||||||