Financial Statement Analysis—Ratios
The following financial statement information for Tronics Inc. is available:
|
(In thousands) |
2008 |
2007 |
2006 |
|
Sales |
$6,041 |
$5,872 |
$5,324 |
|
Cost of goods sold |
3,202 |
2,877 |
2,396 |
|
Operating expenses |
1,991 |
1,779 |
1,578 |
|
Income taxes |
165 |
222 |
280 |
The following information relates to the firm’s common stock for the same period:
|
2008 |
2007 |
2006 |
|
|
Shares outstanding |
1,000 |
1,000 |
1,000 |
|
Market value per share at year end |
$813.00 |
$1,225.00 |
$1,532.00 |
Instructions:
1. For each year compute
(a) Gross profit percentage.
(b) Return on sales.
(c) Price earnings ratio.
2. Do you notice any significant trends as a result of this analysis?