We have calculated the following ratios based on the ending figures. If you don’t remember a definition, refer back to Table 3.8.
|
Current ratio |
$853/$1,725 |
=.49 times |
|
Quick ratio |
$525/$1,725 |
=.30 times |
|
Cash ratio |
$215/$1,725 |
=.12 times |
|
Inventory turnover |
$2,780/$328 |
=8.48 times |
|
Receivables turnover |
$4,053/$310 |
=13.07 times |
|
Days’ sales in inventory |
365/8.48 |
= 43.06 days |
|
Days’ sales in receivables |
365/13.07 |
=27.92 days |
|
Total debt ratio |
$4,033/$7,380 |
=54.6% |
|
Long term debt ratio |
$2,308/$5,655 |
=40.8% |
|
Times interest earned ratio |
$723/$502 |
=1.44 times |
|
Cash coverage ratio |
$1,273/$502 |
=2.54 times |