Financial Ratio & Financial Statement

QUESTION 1

i. Current Ratio
= Current Assets/Current Liability
= $ 14,651,000/$ 19,639,000
= 0.750

ii. Quick Ratio
= (Current Assets – Inventory) / Current Liability
= ($ 14,651,000 – $ 6,136,000) / $ 19,539,000
= 0.436

iii. Total Assets Turnover
= Sales/Total Assets
= $ 167,310,000/$ 108,615,000
= 1.540

iv. Inventory Turnover
= COGS/Inventory
= $ 117,910,000/$ 6,136,000
= 19.216

v. Receivable Turnover
= Sales/Account Receivables
= $ 167,310,000/$ 5,473,000
= 30.570

vi. Debt Ratio
= (Total Assets – Total Equity)/Total Assets
= ($ 108,615,000 – $ 55,341,000) = 0.490

vii. Debt-Equity Ratio
= Total Debt/Total Equity
= ($ 108,615,000 – $ 55,341,000)/ $ 55,341,000
= 0.963

viii. Interest Coverage
= EBIT/Interest Expenses
= $ 23,946,000/$ 3,009,000
= 7.958

ix. Equity Multiplier
= Total Assets/Shareholders’ Equity
= $ 108,615,000/$ 55,341,000
= 1.963

x. Profit Margin
= Net Income/Sales
= $ 12,562,200/$ 167,310,000
= 7.508%

xi. Return on Assets (ROA)
= Net Income/Total Assets
= $ 12,562,200/$ 108,615,000
= 11.566%

xii. Return on Equity
= Net Income/Total Equity
= $ 12,562,200/$ 6,136,000
= 22.700%

QUESTION 2

Ratios | East Coast Yacht ratios | Yacht Industry Ratios | | | Lower Quartile | Median | Upper Quartile | Current Ratio | 0.750 | 0.5 | 1.43 | 1.89 | Quick Ratio | 0.436 | 0.21 | 0.38 | 0.62 | Total asset Turnover | 1.540 | 0.68 | 0.85 | 1.38 | Inventory Turnover | 19.216 | 4.89 | 6.15 | 10.89 | Receivables Turnover | 30.570 | 6.27 | 9.82 | 14.11 | Total debt ratio | 0.490 | 0.44 | 0.52 | 0.61 | Debt/Equity Ratio | 0.963 | 0.79 | 1.08 | 1.56 | Equity Multiplier | 1.963 | 1.79 | 2.08 | 2.56 | Interest Coverage | 7.958 | 5.18 | 8.06 | 9.83 | Profit Margin | 7.508% | 4.05% | 6.98% | 9.87% | Return of Asset(ROA) | 11.566% | 6.05% | 10.53% | 13.21% | Return of Equity(ROE) | 22.700% | 9.93% | 16.54% | 26.15% |

ECY's