Scali Corporation Ratio Analysis May 2011

May-2011, Scali Corporation (Ration Analysis)

(a) CURRENT RATIO= Current Asset/Current Liabilities

= (Cash+ Receivable+ Inventories) /Accounts Payable

= (4300+21200+10000)/12370

=2.86:1

(b) Acid test ratio/ Quick test ratio = (Current Asset-Inventory-Prepaid Expenses) /Current Liabilities

= (35500-10000)/12370

=2.06:1

(c) Receivable turnover

Or Debtor turnover= Net Credit Sale/Average Net Receivable

=100000/ {(21200+23400)/2}

= 4.48:1

(d)  Inventory turnover= Cost of Goods Sold/ Average Inventory

= 60000/ {(10000+7000)/2}

= 7.06:1

(e) Net profit ratio = Net Profit/Net Sales

= 15000/100000

=1:0.15

(f)  Asset turnover = Net Sales/Average Asset

= 100000/ {(110000-15000)+(110000-10000)/2}

= 1.03:1

(g)  Return on asset= Net Income/Average Asset

= [15000/ {(110000-15000)+(110000-10000)/2}] X 100%

= 15.38%

(h) Common stock earning ratio = Net Income/Common Stock

= 15000/75000

= 0.2:1

(i)  Debt to total Asset ratio= Total Debt/Total Asset

= 12370/110000

= 0.11

Or.

= (12370+15000)/110000

=0.29:1