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